onsemi and Synaptics Incorporated have announced they have entered into a definitive agreement under which onsemi will acquire Synaptics in an all-stock transaction, with a total enterprise value of approximately $7 billion.
The deal involves a fixed exchange ratio of 1.350 onsemi common shares for each Synaptics share and includes an approximate 19% premium over the volume-weighted average closing prices of onsemi and Synaptics over the last 10 trading days.
The Arizona-based company said the deal will increase its total addressable market by $30 billion, reaching $243 billion by 2030, and will strengthen its portfolio of intelligence systems. It’s the company’s largest deal so far.
Hassane El-Khoury, President and CEO of onsemi, told investors, “As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act and adapt in real time. This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly. The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data center and into edge applications. This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position onsemi to deliver greater value as customers increasingly seek intelligent systems.”
Rahul Patel, Synaptics President and CEO, stated, “Today’s announcement marks an important step in accelerating Synaptics’ growth and leadership in Edge AI and Physical AI. Together with onsemi, we will combine Synaptics’ strengths in AI-native compute, connectivity, and human-machine interface with onsemi’s leadership in intelligent power and sensing to offer customers integrated solutions and development platforms across every layer of the Edge AI stack, deepening customer engagement and expanding across a greater total addressable market. The all-stock structure allows our shareholders to participate in the compelling growth and value creation opportunities ahead, and I look forward to working with the onsemi leadership team to help realize the full value of this combination.”
Shares of onsemi dropped about 6% after the announcement, while Synaptics shares rallied around 13%.
By CEO NA Editorial Staff
