ON Semiconductor to Acquire Synaptics for $7 Billion in Stock
ON Semiconductor has agreed to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, marking its largest acquisition to date. The deal aims to enhance ON Semiconductor's capabilities in physical artificial intelligence and expand its total addressable market to $243 billion by 2030.
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ON Semiconductor will issue 1.35 shares for each Synaptics share, reflecting a 19% premium based on recent trading prices. Following the announcement, ON Semiconductor's shares fell 8.4% in after-hours trading in New York, while Synaptics' shares rose approximately 13%.
The acquisition is expected to contribute an additional $30 billion to ON Semiconductor's addressable market and generate annual synergies of $200 million within 18 months post-closure. A Synaptics board member will join ON Semiconductor's board as part of the agreement, which is anticipated to finalize in mid-2027. The merger reflects a broader trend of strategic acquisitions in the tech sector aimed at accelerating AI capabilities.
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