ON Semiconductor Acquires Synaptics for $7 Billion
Source: cnbc ·
ON Semiconductor has agreed to acquire Synaptics in a nearly $7 billion all-stock deal, expanding its presence in physical AI technology.
Key takeaways
- ON Semiconductor agreed to buy Synaptics in a $7 billion all-stock deal.
- The acquisition will boost ON Semi's total addressable market to $243 billion by 2030.
- Shares of ON Semi fell 6% after the announcement, while Synaptics shares rallied 13%.
- The deal is expected to close in mid-2027 and will add a Synaptics board member to ON Semi's board.
- Synaptics shareholders will receive 1.350 shares of ON Semiconductor's common stock per share held.
Why it matters
The acquisition highlights the growing importance of physical AI technology in the tech industry, with companies racing to strengthen their AI capabilities. ON Semi's deal with Synaptics positions the company to deliver greater value to customers seeking intelligent systems, and the acquisition's impact on the company's total addressable market will be closely watched by investors and analysts alike. The deal also underscores the competitive landscape in the AI technology space, where companies are increasingly turning to acquisitions to bolster their capabilities.
What to watch
- ON Semi's earnings date in 2027, which may be impacted by the acquisition.
- The company's ability to integrate Synaptics' technology and expand its ecosystem reach.
- The potential for ON Semi to deliver greater value to customers as they increasingly seek intelligent systems.