onsemi to acquire Ferric for $600 million in cash

Nasdaq-listed onsemi has agreed to acquire Ferric, Inc., an integrated voltage regulator (IVR) technology company, for $600 million in cash at closing plus up to $175 million in contingent consideration tied to revenue milestones. The deal will be funded with cash on hand and is expected to close by the end of 2026, subject to customary conditions.

Ferric integrates power controllers, FETs, inductors and capacitors into a single compact package, which the companies say reduces board area by 50-70% compared with discrete regulators. Ferric holds more than 40 patents, and about 50 of its employees, mainly in New York and Silicon Valley, are expected to join onsemi. onsemi said it is raising its 2030 AI data center revenue target by $500 million to more than $3 billion.

Barclays acted as exclusive financial adviser and Morrison & Foerster LLP as legal counsel to onsemi. UBS Investment Bank acted as exclusive financial adviser and Cooley LLP as legal counsel to Ferric.