Summary
Analog Devices, Inc. (ADI) announced on November 8, 2007, its agreement to sell or license its CPU voltage regulation and PC thermal monitoring product line to subsidiaries of ON Semiconductor Corporation (ON) for approximately $185 million in cash. This divestiture includes core voltage regulator products for CPUs in computing and gaming, as well as temperature sensors and fan-speed controllers for CPU thermal management. Investors should note that the transaction also includes a one-year manufacturing supply arrangement and a three-year non-competition covenant for ADI related to the divested product line. The company will also provide transition services to ON Semiconductor. The closing is contingent upon regulatory approvals and other customary conditions. This strategic move indicates ADI's focus on refining its product portfolio and potentially reallocating resources.
Key Highlights
- 1Analog Devices, Inc. (ADI) is selling its CPU voltage regulation and PC thermal monitoring product line.
- 2The buyer is ON Semiconductor Corporation (ON), with subsidiaries involved in the transaction.
- 3The total cash consideration for the sale is approximately $185 million.
- 4The divested assets include CPU voltage regulators, temperature sensors, and fan-speed controllers for thermal management.
- 5A one-year manufacturing supply arrangement and a three-year non-competition covenant are part of the agreement.
- 6ADI will provide transition services to ON Semiconductor post-closing.
- 7The transaction is subject to customary closing conditions and regulatory approvals.