Sanyo Electric will sell its semiconductor business to U.S.-based ON Semiconductor for $336 million, the companies announced on July 15.
The purchase of Sanyo Semiconductor will be a cash and stock transaction and is to be completed by year's end, they said.
The acquisition "is another significant step by ON Semiconductor to solidify its position as a premier global supplier of high-performance, energy efficient silicon solutions," said Keith Jackson, CEO of ON Semiconductor.
Based on the most recent completed quarter, Sanyo Semiconductor's annualized revenue was about $1.2 billion. The annualized revenue of the combined entity would be approximately $3.5 billion.
Panasonic secured a controlling stake in Sanyo in December amid a wave of operational streamlining by Japan's high-tech giants as they sought to recover from a severe industry slump sparked by the global economic downturn.
Sanyo said in May it expected to return to profit in the year to March 2011 thanks to rising global demand for environmental technologies such as solar panels.
Sanyo has said it will continue to strengthen its clean energy operations, for example by producing batteries for hybrid vehicles, and solar cells.