PHOENIX, 23 Aug. 2008. ON Semiconductor Corp. and Catalyst Semiconductor Inc. signed a definitive merger agreement providing for the acquisition of Catalyst Semiconductor by ON Semiconductor in an all-stock transaction. This deal represents an equity value of approximately $115 million and an enterprise value of approximately $85 million.
"The acquisition of Catalyst Semiconductor will add to our high gross margin analog and mixed-signal product offerings for the digital consumer and wireless end-markets," says Keith Jackson, ON Semiconductor president and CEO. "Catalyst Semiconductor's analog and mixed-signal business represented more than $11 million in sales as of their April 2008 fiscal year end -- a business that grew more than 90 percent versus the prior year. Catalyst Semiconductor's EEPROM technology will strengthen our custom application-specific circuits (ASIC) and power products capabilities expanding our ability to more comprehensively address our customers' needs. With the combination of ON Semiconductor's global footprint, effective channels of distribution, and top-tier customer relationships, we expect to be able to support a broader and deeper penetration of Catalyst's overall product portfolio. This should enable us to accelerate their revenue growth and increase market share. We also believe additional revenue from Catalyst Semiconductor's strong portfolio offering will benefit from ON Semiconductor's manufacturing capabilities. We look forward to welcoming Gelu Voicu, Catalyst Semiconductor's CEO, as well as the talented Catalyst employee base to ON Semiconductor."
