Onsemi to buy Synaptics in $7 billion all-stock deal

Source Credit : Portfolio Prints

ON Semiconductor Corp. announced on Thursday that it has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, marking the largest acquisition in its history. The deal is designed to strengthen Onsemi's position in AI-enabled devices and accelerate its expansion into the emerging physical AI market.

Under the terms of the agreement, Synaptics shareholders will receive 1.350 shares of Onsemi common stock for each Synaptics share. The exchange ratio represents a 19% premium based on the 10-day volume-weighted average closing prices of the two companies' shares.

The acquisition is intended to accelerate Onsemi's growth in physical AI—the integration of artificial intelligence into real-world devices, machines, and robotics. Synaptics' connected-computing platform complements Onsemi's established strengths in the automotive, industrial, and power semiconductor markets, Chief Executive Officer Hassane El-Khoury said in an interview with Reuters.

"What Synaptics brings to us is this acceleration with a world-class connected computing platform that is already deployed across the markets we serve," El-Khoury said.

"Together, we believe this combination will create a market leader in the rapidly evolving physical AI ecosystem," he added.

Onsemi estimates that the acquisition will expand its total addressable market by approximately $30 billion, increasing its long-term opportunity to roughly $243 billion by 2030.

Investors reacted cautiously to the announcement. Onsemi shares fell nearly 10% in extended trading, while Synaptics shares gained more than 10%, reflecting the acquisition premium.

Beyond connected computing, the transaction also strengthens Onsemi's capabilities in human-machine interfaces, robotics, and humanoid technologies by adding Synaptics' advanced research, development expertise, and product portfolio, El-Khoury said.