ON Semiconductor buys Truesense Imaging for $92m
ON Semiconductor has signed an agreement to acquire Truesense Imaging from Platinum Equity for $92 million. The acquisition will expand ON Semiconductor’s customer base by more than 200 customers.
Truesense provide high-performance image sensor devices for use in a wide range of industrial end-markets including machine vision, surveillance, traffic monitoring, medical and scientific imaging, and photography.
Under the terms of the agreement, ON Semiconductor will pay approximately $92 million in cash to acquire Truesense, subject to customary adjustments at closing. The acquisition will be funded by available cash on ON Semiconductor’s balance sheet.
Platinum Equity acquired Truesense -- previously known as Kodak Image Sensor Solutions -- in November 2011. Based on unaudited results, Truesense’s revenue for 2013 was approximately $79 million with gross and operating margins of approximately 44 per cent and 23 per cent, respectively.
‘The pending acquisition of Truesense Imaging is a step towards our stated strategic goal of expanding our presence in select segments of the industrial end-market,’ said Keith Jackson, president and CEO of ON Semiconductor. ‘With the acquisition of Truesense, we will augment our abilities to deliver a broad range of high-performance image sensors to the industrial end-market and at the same time significantly expand our customer footprint. I am excited about the growth opportunities the combination of the two companies presents in the high-performance imaging market.’
Truesense will be incorporated in ON Semiconductor’s Application Products Group (APG) business group. The transaction has been approved by ON Semiconductor’s and Truesense’s boards of directors and is anticipated to close before the end of the second quarter of 2014, subject to required regulatory approvals and customary closing conditions.
Chris McNiffe, CEO of Truesense Imaging, commented: ‘This combination enables us to leverage our technology base and four decades of imaging expertise with ON Semiconductor’s R&D, manufacturing and global logistics infrastructure.’