ON Semiconductor Corporation’s $1.07 Billion Acquisition of Quantenna Communications, Inc.

Morrison & Foerster LLP served as legal advisor to ON Semiconductor. Qatalyst Partners acted as exclusive financial advisor to Quantenna, along with O’Melveny & Myers LLP, who served as legal advisor.

ON Semiconductor Corporation (Nasdaq: ON) and Quantenna Communications, Inc. (Nasdaq: QTNA) have entered into a definitive agreement for ON Semiconductor to acquire Quantenna for $24.50 per share in an all cash transaction.

The acquisition consideration represents equity value of approximately $1.07 billion and enterprise value of approximately $936 million, after accounting for Quantenna’s net cash of approximately $136 million at the end of fourth quarter of 2018. The acquisition significantly enhances ON Semiconductor’s connectivity portfolio with the addition of Quantenna’s industry leading Wi-Fi technology and software capabilities.

Following consummation, the transaction is expected to be immediately accretive to ON Semiconductor’s non-GAAP earnings per share and free cash flow, excluding any non-recurring acquisition related charges, the fair value step-up inventory amortization, and amortization of acquired intangibles.

The transaction is not subject to a financing condition. ON Semiconductor intends to fund the transaction through cash on hand and available capacity under its existing revolving credit facility.

Completion of the transaction is subject to approval by Quantenna’s stockholders, regulatory approvals and other customary closing conditions.

MoFo’s M&A team was led by partners Eric McCrath (Picture) and Lauren Bellerjeau (corporate), partner Paul Jahn (technology transactions), partner Anthony Carbone (tax), partner Ron Aizen (benefits), and partner Jonathan Gowdy (antitrust).

O’Melveny represented Wi-Fi technology leader Quantenna Communications, Inc. with a team led by partners Warren Lazarow and Andor Terner and counsel Noah Kornblith, included associates John Chong, Bhavreet Gill, Jessica Iwasaki, Carolyn White, Elaine Sun and AJ Talt. Also advising on the deal were partner Robert Fisher (tax), partner Jeff Walbridge and senior counsel Warren Fox (executive compensation), partner Andrew Dolak and counsel Tom Oslovar (intellectual property), and partner Courtney Dyer and counsel Courtney Byrd (antitrust compliance).

Involved fees earner: Ron Aizen – Morrison Foerster; Lauren Bellerjeau – Morrison Foerster; Anthony Carbone – Morrison Foerster; Jonathan Gowdy – Morrison Foerster; Paul Jahn – Morrison Foerster; Eric McCrath – Morrison Foerster; Courtney Byrd – O’Melveny & Myers LLP; John Chong – O’Melveny & Myers LLP; Andrew Dolak – O’Melveny & Myers LLP; Courtney Dyer – O’Melveny & Myers LLP; Robert Fisher – O’Melveny & Myers LLP; Warren Fox – O’Melveny & Myers LLP; Jessica Iwasaki – O’Melveny & Myers LLP; Noah Kornblith – O’Melveny & Myers LLP; Warren Lazarow – O’Melveny & Myers LLP; Tom Oslovar – O’Melveny & Myers LLP; Bhavreet Singh Gill – O’Melveny & Myers LLP; Elaine Sun – O’Melveny & Myers LLP; AJ Talt – O’Melveny & Myers LLP; Andor Terner – O’Melveny & Myers LLP; Jeff Walbridge – O’Melveny & Myers LLP; Carolyn White – O’Melveny & Myers LLP;

Law Firms: Morrison Foerster; O’Melveny & Myers LLP;

Clients: ON Semiconductor Corporation; Quantenna Communications Inc;