) 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.
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.
), sporting a Zacks Rank #1 (Strong Buy), and
), with a Zacks Rank #2 (Buy).
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