June 25 - Onsemi announced on Thursday that it has reached an agreement to acquire Synaptics in an all-stock transaction valued at approximately $7 billion. The deal is positioned to broaden Onsemi's role in markets for devices that incorporate artificial intelligence capabilities.
Under the terms set out in the agreement, holders of Synaptics shares will receive 1.350 shares of Onsemi common stock for every Synaptics share they own. That exchange ratio equates to a 19% premium when measured against the 10-day volume-weighted average closing prices for the two companies' shares.
Market reaction in extended trading reflected investor reassessment of the combined valuation and structure of the proposed deal. Onsemi's shares declined by about 7.4% in after-hours trading, while Synaptics' stock fell roughly 0.5%.
"This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position onsemi to deliver greater value as customers increasingly seek intelligent systems," Onsemi Chief Executive Hassane El-Khoury said.
The purchase is structured as an all-stock exchange rather than a cash deal, which means Synaptics shareholders will become equity holders of the combined company through the specified share swap. The premium embedded in the exchange ratio is based solely on the 10-day volume-weighted average closing prices for each company, as disclosed in the agreement.
Investors and market participants will be watching how the integration of Synaptics' portfolio and Onsemi's existing product lines unfolds and how that process affects near-term trading dynamics for both sets of shares. For now, the immediate market response reflected downward pressure on Onsemi's stock in extended hours and a modest decline in Synaptics' share price.
Summary: Onsemi has agreed to acquire Synaptics in a roughly $7 billion all-stock transaction in which Synaptics shareholders will receive 1.350 Onsemi shares per Synaptics share, representing a 19% premium based on 10-day VWAPs. Following the announcement, Onsemi shares fell about 7.4% in extended trading and Synaptics shares were down approximately 0.5%.