Onsemi revises Synaptics acquisition to $5.7 billion cash deal
Onsemi (formerly ON Semiconductor) announced revised terms for its acquisition of Synaptics, changing the deal to $5.7 billion in cash. This replaces the previously agreed stock transaction valued at $7 billion.
US-based semiconductor manufacturer onsemi has agreed to modify the terms of its previously announced acquisition of Synaptics. The revised agreement states that onsemi will acquire Synaptics for approximately $5.7 billion in cash. This represents a shift from the initial June 2024 announcement, which proposed a $7 billion stock-for-stock transaction. The new cash offer implies an approximate 18.6% discount compared to the original valuation.
The company stated that the revision was prompted by an unsolicited competitive acquisition proposal received from a third party. Onsemi anticipates that the revised transaction will immediately enhance its Non-GAAP earnings per share and provide Synaptics shareholders with value certainty. The change comes as onsemi's stock price has experienced a significant decline since the initial deal was announced in June, likely influencing the renegotiation of the acquisition terms.
The transaction is still expected to close by mid-2027, subject to approval from Synaptics shareholders, necessary regulatory clearances, and other customary closing conditions. The US Federal Trade Commission has approved the deal, with reviews ongoing in other jurisdictions. The acquisition aims to bolster onsemi's capabilities in chips for edge computing and artificial intelligence.