ON Semiconductor Agrees $5.7 Billion All-Cash Synaptics Deal
ON Semiconductor has agreed to buy Synaptics for 123 dollars a share in cash. The deal values the chipmaker at about 5.7 billion dollars.
It is the second attempt at a takeover. ON Semiconductor first offered an all-stock deal worth about 7 billion dollars in June, at 1.35 of its own shares per Synaptics share. Synaptics walked away after a rival bidder emerged.
This time the offer is all cash and about 19 percent lower. Synaptics shares still jumped 14 percent on the news. ON Semiconductor rose 6 percent.
The combined company would be a leader in automotive and industrial chips. ON’s chief executive Hassane El-Khoury said the deal would boost earnings immediately. The companies expect 200 million dollars a year in cost savings.
ON Semiconductor will borrow 2.45 billion dollars from Morgan Stanley to help pay for it. The deal has US antitrust clearance but still needs Synaptics shareholder approval and other regulators.
The companies expect it to close in mid-2027. The merger wave in semiconductors shows no sign of slowing.
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