Prime Highlights
- Onsemi will acquire Synaptics in a $7 billion all-stock deal, its largest acquisition, to expand its physical AI and connected computing business.
- The acquisition strengthens Onsemi’s position in AI-enabled devices, automotive, industrial, robotics, and humanoid technologies.
Key Facts
- Synaptics shareholders will receive 1.350 Onsemi shares for each Synaptics share, representing a 19% premium.
- Onsemi expects the acquisition to expand its total addressable market to $243 billion by 2030.
Background
ON Semiconductor Corp has agreed to buy chipmaker Synaptics in an all-stock deal worth around 7 billion dollars, marking the largest acquisition in the company’s history as it moves to strengthen its position in artificial intelligence-enabled devices.
Under the deal, Synaptics shareholders will receive 1.350 shares of Onsemi common stock for each Synaptics share they hold. The exchange ratio gives Synaptics shareholders a 19% premium based on the 10-day volume-weighted average closing prices of both companies.
Onsemi Chief Executive Hassane El-Khoury said the acquisition targets growth in physical AI, a term used to describe artificial intelligence built directly into devices and machines.
He said Synaptics brings a connected computing platform already present in markets where Onsemi operates, and that the combined business would become a market leader in the physical AI space.
Synaptics’ platform complements Onsemi’s existing strengths in automotive, power and industrial markets. The deal also gives Onsemi access to Synaptics’ human-machine interface business and its research and development work in robotics and humanoid technology.
Onsemi expects the acquisition to expand the total market it can target by 30 billion dollars, pushing that figure to 243 billion dollars by 2030.
Markets reacted sharply to the news. Shares of Onsemi dropped nearly 10% in after-hours trading, while Synaptics shares climbed more than 10% following the announcement. The deal is subject to shareholder and regulatory approvals before it can close.
