ON Semiconductor has agreed to acquire Wi-Fi performance specialist Quantenna for USD 1.07 billion. The company said the takeover will significantly enhance its connectivity portfolio with the addition of Quantenna’s leading Wi-Fi technology and software capabilities.
ON agreed to pay USD 24.50, a premium of nearly 20 percent on Quantenna's latest closing share price. The net price will be USD 936 million, after accounting for Quantenna’s net cash of USD 136 million at end-2018.
The takeover is expected to add to adjusted EPS and free cash flow immediately, excluding any one-time acquisition related charges. ON Semiconductor intends to fund the transaction through cash on hand and available capacity under its existing revolving credit facility.
Completion of the deal is subject to approval by Quantenna’s stockholders, regulatory approvals and other customary closing conditions. The transaction has been approved by ON Semiconductor’s and Quantenna’s boards of directors and is expected to close in the second half of 2019.
