ON Semiconductor (NASDAQ: ONNN) recently announced that it has entered into a definitive agreement to acquire Aptina Imaging for about $400 million in cash, subject to customary closing conditions.
California-based Aptina Imaging manufactures high-performance CMOS image sensors for automotive and industrial uses. The company's sensors are also used in cameras, mobile devices, and computing and gaming platforms. According to the IHS Image Sensor Market Tracker, the company held approximately 6% of the $3.12 billion image sensor market in 2013.
Aptina's offerings will likely strengthen ON Semiconductor's already established high-speed, high-performance CMOS image sensor business. The strategic move aims to compliment the company's existing image sensor products, especially designed to address the needs of general-purpose industrial and automotive image sensing applications, including machine vision, multiple cameras, digital cinema and motion analysis among others.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Additionally, the acquisition will strengthen ON Semiconductor's talent base and add an experienced design and applications engineering team to the image sensor market segment. Also, the deal is expected to boost profitability, going forward.
ON Semiconductor is a leading supplier of image sensor products. The company serves a broad base of end-user markets, including automotive, communications, computing, consumer, medical, industrial, smart grid and military/aerospace.
In the last concluded quarter, ON Semiconductor reported revenues of $706.5 million, down 0.4% sequentially but up 6.9% year over year. Reported revenues missed the Zacks Consensus Estimate of $712.0 million. However, earnings of 17 cents beat the Zacks Consensus Estimate by 2 cents.
ON Semiconductor has a Zacks Rank #3 (Hold). Other better-ranked stocks that are performing well at the current levels include Universal Electronics Inc. (NASDAQ: UEIC) and Exar Corp. (NASDAQ: EXAR), sporting a Zacks Rank #1 (Strong Buy), and GigOptix, Inc. (AMEX:GIG), with a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ON SEMICON CORP (NASDAQ: ONNN): Free Stock Analysis Report
EXAR CORP (NASDAQ:
UNIVL ELECTRS (NASDAQ: UEIC): Free Stock Analysis Report
GIGOPTIX INC (AMEX:GIG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research