ON Semiconductor agrees to buy Ferric for $600.0m and lifts its AI data center revenue target
The chipmaker will pay up to $175.0m more in cash if Ferric meets revenue milestones, and expects the deal to close in the fourth quarter of 2026.
Chart: ON, one-minute prices, three sessions
ON Semiconductor will buy Ferric for $600.0m in cash. Ferric makes integrated voltage regulator technology, which is used to deliver power to AI processors. The company is raising its 2030 AI data center revenue target by $500m, to more than $3bn, as a result.
That target is management's own forecast, and it is the deal that lifts it. It is not yet revenue. The price also carries a condition: up to $175.0m in further cash is payable only if Ferric reaches revenue milestones, so part of what ON Semiconductor pays depends on the business delivering.
The purchase is a targeted bolt-on in power delivery rather than a broad bet, and there is no sign of competing interest, which suggests a clean path to closing. It looks like a wager that demand from AI data centers will last long enough to justify the higher number.
The deal is expected to close in the fourth quarter of 2026.
© Raydn · raydn.us
Related news
- · From the wire
Cirrus Logic confirms it made acquisition proposals for Synaptics and is the party identified as "Party A" in filings made by Synaptics and ON Semiconductor in connection with their pending merger. The company says it does not adopt or confirm the accuracy of the descriptions of its proposals contained in those filings, and states it is not currently pursuing a transaction with Synaptics and will not provide further comment at this time.