BUZZ-Onsemi falls, plans $600 million acquisition of Ferric, announces third quarter results

November 2 - ** Shares of chipmaker Onsemi (ON.O) fell about 5% in after-hours trading to $66.53

** The company agreed to acquire Ferric for $600 million in cash, with an additional payment of up to $175 million if certain revenue milestones are met

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

** Onsemi stated that the transaction will "enhance long-term revenue and profit margins once scaled," but it is not expected to have a significant financial impact in the short term

** The deal will be financed with existing cash and is expected to be completed by the end of the year. As of October 2, the company held $4.16 billion in cash and cash equivalents

** The chipmaker said the deal will raise its 2030 data center revenue target by $500 million, which is already over $3 billion

** ON also reported third-quarter results that exceeded market expectations; according to data compiled by London Stock Exchange Group (LSEG), revenue was $1.72 billion, beating expectations of $1.70 billion, and adjusted earnings per share were $0.90, above expectations of $0.88

** Fourth quarter revenue is expected to range between $1.72 billion and $1.82 billion, with adjusted earnings per share between $0.95 and $1.07, both significantly higher than market expectations

** As of the close of the previous trading day, the stock had gained 29.5% year-to-date

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