ON Semiconductor and Sanyo Electric announced the signing of a definitive purchase agreement providing for the acquisition of Sanyo Semiconductor, a subsidiary of Sanyo Electric, and other assets related to Sanyo Electric's semiconductor business, by ON Semiconductor in a cash and stock transaction with a purchase price of approximately $366 million.

Based on the most recently completed quarter, Sanyo Semiconductor's annualized revenue was approximately $1.2 billion and the annualized revenue of the combined entity would be approximately $3.5 billion. The acquisition is expected to be completed before the end of 2010.

This acquisition will expand ON Semiconductor's product portfolio, adding new capabilities ranging from microcontrollers and custom Application Specific Integrated Circuits (ASICs) to integrated power modules and motor control devices.

Pursuant to the terms of the agreement, which has been approved by the boards of directors of both ON Semiconductor and Sanyo Electric, Sanyo Electric is expected to receive approximately $129 million in cash and approximately $238 million worth of ON Semiconductor common stock.