Quantenna was founded in 2006 and has specialized in MIMO Wi-Fi chips. On Semi said it can now apply this technology in automotive and industrial applications. On Semi said it will marry its abilities in power management and Bluetooth with Quantenna's Wi-Fi and software expertise.
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 4Q18.
On Semi said it would fund the deal through cash on hand and available capacity under its existing revolving credit facility.
The deal has been approved by both boards of directors but is subject to approval by Quantenna's shareholders and is expected to close in 2H19.
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