On Semiconductor Agrees to Acquire Synaptics for $7 Billion
On Semiconductor has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion in enterprise value, marking a significant expansion into edge artificial intelligence and physical AI markets. Under the terms of the deal, Synaptics shareholders will receive 1.35 shares of onsemi for each share they hold, representing a roughly 19% premium to recent market prices. The combined company stated that the acquisition will consolidate onsemi's power and sensing chip capabilities with Synaptics' connectivity technology, with planned annual synergies of $200 million and earnings accretion expected within 18 months. The transaction is scheduled to close around mid-2027.
Shares of onsemi fell approximately 20% following the announcement, erasing a substantial portion of the chipmaker's more than 100% year-to-date gain and marking its worst intraday drop since October 2023. The decline coincided with TD Cowen downgrading onsemi to a hold from a buy, lowering its price target to $110 from $115. Analyst Joshua Buchalter noted that while onsemi is well positioned in the automotive and data center sectors, the acquisition adds complexity to its growth strategy. Buchalter expressed concerns that combining a semiconductor company heavily reliant on auto and data center loadings with Synaptics' exposure to consumer wireless and edge AI could distract investors and muddy the narrative, particularly as onsemi shares trade at roughly 25 times the firm's 2027 earnings estimates.
From the sources (11 posts)
@negligible_cap*ONSEMI TO BUY SYNAPTICS FOR ENTERPRISE VALUE OF ABOUT $7B $ON to buy $SYNA, all stock transaction for $7B EV, or 1.35 shares of $ON per Synaptic share. 19% premium.
@wallstengineonsemi $ON will acquire Synaptics $SYNA in an all-stock deal valued at ~$7B in total enterprise value. $SYNA holders will receive 1.350 $ON shares per share and own ~12% of the combined company. Deal expected to close mid-2027, with $200M
@stockmktnewzOn Semiconductor $ON has agreed to acquire Synaptics $SYNA for $7 Billion in a all stock deal
@stocksavvyshay$ON is acquiring $SYNA in an all-stock deal valued at $7B. The deal brings together onsemi’s power and sensing chips with Synaptics edge AI and interface technology giving the combined company a stronger position in physical AI. https://t
@alphasenseinconsemi to Acquire Synaptics to Enable the Next Generation of Intelligent Systems for Physical AI "onsemi (Nasdaq: $ON) and Synaptics Incorporated (Nasdaq: $SYNA) today announced they have entered into a definitive agreement under which ons
@zephyr_z9WOW
@businessUS chipmaker Onsemi has agreed to buy Synaptics, a firm that specializes in semiconductors for smart devices, in an all-stock deal that values the company at about $6.2 billion
@cnbcOn Semiconductor strikes $7 billion deal for Synaptics in physical AI push
@wallstengineTD Cowen Downgrades $ON to Hold from Buy, Lowers PT to $110 from $115 Analyst comments: "We downgrade ON to Hold following its announced plans to acquire Synaptics. We believe in the organic auto/data center growth and capital return story
@zerohedge*ON SEMICONDUCTOR SHARES SINK 19%, MOST INTRADAY SINCE OCT. 2023
@stocksavvyshay$ON is down over 20% after announcing a $7B all-stock deal to acquire $SYNA and expand its edge AI and physical AI portfolio. The deal adds AI compute and connectivity, targets $200M in annual synergies and is expected to become earnings a