ON Semiconductor and Quantenna Communication. Inc. announced on March 27, US time that the two parties have reached a final agreement on the acquisition of Quantenna by ON Semiconductor. ON Semiconductor will acquire Quantenna in an all-cash transaction of US$24.50 per share. The purchase price represents Quantenna’s equity value of approximately US$1.07 billion and an enterprise value of approximately US$936 million. Quantenna’s net cash of approximately US$136 million at the end of the fourth quarter of 2018 has been taken into account. This acquisition adds Quantenna’s industry-leading Wi-Fi technology and software expertise, significantly enhancing ON Semiconductor’s connectivity product lineup.

The acquisition of Quantenna is another step to strengthen ON Semiconductor's position in the industrial and automotive markets. ON Semiconductor’s expertise in energy-efficient power management and a wide range of sales and distribution combined with Quantenna’s industry-leading Wi-Fi technology and software expertise creates a powerful platform that meets low-power consumption in fast-growing industrial and automotive applications Connect the needs of the market.

After the transaction is completed, it is expected to immediately increase ON Semiconductor’s non-GAAP earnings per share and available cash flow, excluding any non-recurring acquisition-related expenses, fair value incremental inventory amortization, and amortization of acquired intangible assets.

The transaction is not restricted by financing conditions. ON Semiconductor plans to fund the transaction with its cash on hand and available revolving credit facilities.

The completion of the transaction is subject to Quantenna’s shareholder approval, regulatory approval and other customary closing conditions. The transaction has been approved by the board of directors of ON Semiconductor and Quantenna, and is expected to be completed in the second half of 2019. The proposed transaction does not require shareholder approval from ON Semiconductor.