Motorola's SCG Group Completes Spin-Off, Changes Name

Motorola Inc. completed its transaction with Texas Pacific Group of a management buyout of the Semiconductor Components Group (SCG), a business unit of Motorola's Semiconductor Products Sector. Under terms of the transaction, Motorola received $1.6 billion in cash, notes and approximately 10% of the stock of the new company.

SCG is one of five business units formed when SPS reorganized in 1997. This group unified SPS' standard logic and analog integrated circuits and discrete components in to a single business unit, competing in a market that is less technology-intensive and where leadership is measured by the ability to be the high-volume, low-cost provider with superior customer service.

Steven Hanson, former Motorola senior vice president and general manager of the Semiconductor Components Group, will continue to lead the new business, named ON Semiconductor, as president.