ON Semiconductor agrees to acquire Cypress CMOS image sensor business
ON Semiconductor (Nasdaq: ONNN; Phoenix, AZ, USA), a supplier of silicon solutions for energy-efficient electronics, and Cypress Semiconductor Corp. (Nasdaq: CY; San Jose, CA, USA) have signed a definitive agreement for ON Semiconductor to acquire the CMOS Image Sensor Business Unit (ISBU) from Cypress in an all-cash transaction for approximately $31.4 million. The transaction is expected to close by the end of 1Q11, subject to customary closing conditions.
The ISBU will become an integrated part of ON Semiconductor’s Digital, Military/Aerospace and Image Sensor (DMI) division.
Cypress’s custom and standard CMOS image sensors are used in multimegapixel digital photography and cinematography, machine vision, linear and 2-D barcode imaging, medical x-ray imaging, biometrics, and aerospace applications. The company’s products include the VITA, LUPA, STAR and IBIS families.
“The 2-D high-speed CMOS image sensors from the ISBU will significantly strengthen and complement ON Semiconductor’s image sensor products for the industrial, medical, computing, and military/aerospace markets,” says Bob Klosterboer, senior vice president and general manager of ON Semiconductor’s Digital and Mixed Signal Group (DMSG).
Cypress president and CEO T.J. Rodgers notes that the sale will enable Cypress to focus the company’s efforts on developing and supporting more programmable products like the PSoC system-on-chip family and TrueTouch touch-sensing controllers.
ON Semiconductor’s current product lineup targets 1-D image sensing with focus on contact image sensing and ambient/proximity sensors. Once the acquisition is closed, the company says it will possess more comprehensive image sensing offerings between 1-D and 2-D sensors across multiple end markets.
Pursuant to the agreement, ON Semiconductor is expected to acquire approximately 100 patents and patent applications related exclusively to the business and receive appropriate intellectual property licenses from Cypress Semiconductor in order to continue to conduct and grow the business. As part of the transaction, approximately 80 Cypress Semiconductor ISBU employees will join the ON Semiconductor organization.
Upon the closing, ON Semiconductor may record one-time charges related to the transaction. The amounts of such charges, if any, have not yet been determined.
SOURCE: ON Semiconductor
-- Posted by Vision Systems Design