Onsemi down, chipmaker to acquire Ferric for at least $600 million, posts Q3 results

By Reuters News21:54 (UTC), 2 November 2026 Updated

** Shares of chipmaker Onsemi ON.O slip ~5% to $66.53 in extended trading

** Co agrees to buy Ferric for $600 million in cash, plus up to $175 million if certain revenue milestones are met

** Ferric designs power converters and voltage regulators for semiconductors, which help improve processor efficiency

** ON says deal will be accretive to long-term revenue and margins "at scale," but expects no meaningful near-term financial impact

** Deal to be funded with cash on hand and expected to close by year-end. Co had $4.16 billion in cash and cash equivalents as of Oct. 2

** The chipmaker says the deal is helping boost its 2030 data center revenue target by $500 million to more than $3 billion now

** ON also reports Q3 results above market estimates; revenue of $1.72 billion beats estimates of $1.70 billion, while adjusted EPS of 90 cents tops 88-cent estimate, according to data compiled by LSEG

** Forecasts Q4 revenue between $1.72 billion and $1.82 billion and adjusted EPS of 95 cents to $1.07, both largely above estimates

** Up to last close, stock up 29.5% YTD