ON Semiconductor to Buy Synaptics in All-Stock Deal With $7 Billion Enterprise Value

ON Semiconductor agreed to acquire Synaptics in an all-stock transaction with an enterprise value of around $7 billion, the companies said Thursday. The chip maker said it will issue 1.35 shares for each share of Synaptics. That ratio represents a roughly 19% premium to the two stocks' volume-weighted average prices over the last 10 trading days. Shares of ON Semiconductor fell 7.3% to $110.12 after hours. The acquisition is expected to close in the middle of next year. One member of the Synaptics board will join ON Semiconductor's board as part of the deal. The company expects the transaction to be accretive to adjusted per-share earnings within 18 months of closing and to drive an expected $200 million in annual synergies and gross margins. ON Semiconductor said Synaptics' artificial-intelligence compute platform, human-machine interface technology and connectivity solutions would help it meet demand for increasingly capable AI solutions that can interact with the physical world. "This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly," ON Semiconductor Chief Executive Hassane El-Khoury said. "The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data center and into edge applications." The Wall Street Journal reported the deal.