ON Semiconductor has restructured its Synaptics acquisition into an all-cash deal worth about $5.7 billion, down from the earlier $7 billion stock agreement, the Wall Street Journal reported. Synaptics shareholders will receive $123 per share in cash.

The original June deal offered 1.35 ON shares per Synaptics share. After ON’s stock fell by about a third from its summer highs, the shrinking value of the all-stock offer cast doubt on the deal.

The revision followed an unsolicited competing offer for Synaptics from an unnamed bidder. ON said the amended agreement is a more financially attractive transaction and will be immediately accretive to adjusted earnings per share.

ON also agreed to borrow up to $2.45 billion in a senior secured term loan from Morgan Stanley to fund part of the acquisition. Synaptics shares jumped about 14 per cent on the news, while ON gained around 6 per cent.

Synaptics makes processors and connectivity chips used in physical AI applications such as autonomous driving and robotics. The deal is expected to close by mid-2027, subject to shareholder approval and remaining regulatory clearances.