Chip maker ON Semiconductor Corp. said Monday it agreed to buy California Micro Devices Corp. for $4.70 per share.

This represents a premium of 54 percent over California Micro's closing stock price on Friday.

ON Semiconductor said the deal has an equity value $108 million based on common shares outstanding and issued. Based on California Micro's 22.8 million outstanding shares as of Oct. 30, the deal is worth $107.3 million.

Both boards of directors have approved the deal. ON said the acquisition will strengthen its product offerings in markets such as wireless, computing and consumer electronics.

The acquisition is expected to close in the first quarter.

Shares of California Micro Devices rose $1.64, or 54 percent to $4.69 in premarket trading.