WASHINGTON (dpa-AFX) - onsemi (ON) on Monday said it agreed to acquire Ferric Inc., an innovator in integrated voltage regulator technology, for $600 million in cash, plus up to $175 million in contingent consideration tied to revenue milestones.
The acquisition is expected to strengthen onsemi's position in power delivery for next-generation AI processors by adding Ferric's integrated voltage regulator technology. The transaction will be funded with cash on hand and is expected to close by the end of 2026, subject to customary conditions.
Ferric's technology integrates power controllers, transistors, inductors and capacitors into a compact package, reducing board area by 50% to 70% compared with conventional discrete voltage regulator solutions.
Following the deal, onsemi raised its 2030 AI data center revenue target by $500 million to more than $3 billion. The company expects the acquisition to support long-term revenue growth, gross margin and earnings-per-share targets at scale, with no meaningful near-term financial impact.
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