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The
offer of $20 per share represents a premium of nearly 12 percent
to Fairchild's Tuesday close. Shares of Fairchild were trading
at $19 before the opening bell on Wednesday.
The deal will help the company bolster its semiconductor
business that makes chips to improve power efficiency in
products ranging from home appliances to automobiles.
The semiconductor industry is seeing a wave of deals as
companies seek to meet demand for cheaper chips and diversify
portfolios as Internet-connected devices gain popularity.
Intel Corp agreed in June to buy Altera Corp for $16.7
billion, while Avago Technologies Ltd said in May that it would
buy Broadcom Corp for $37 billion.
More than $80 billion in semiconductor M&A has been racked up so
far this year, according to Thomson Reuters data.
Bloomberg reported in October that Fairchild Semiconductor had
hired Goldman Sachs to find a buyer and Infineon Technologies AG
<IFXGn.DE> was named as another suitor.
Deutsche Bank and BofA Merrill Lynch are financial advisers to
ON Semiconductor, while Morrison & Foerster are the legal
adviser.
Goldman Sachs is financial adviser to Fairchild and Wachtell,
Lipton, Rosen & Katz is the legal adviser.
(Reporting by Devika Krishna Kumar and Lehar Maan in Bengaluru;
Editing by Saumyadeb Chakrabarty and Anil D'Silva)
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