onsemi to Acquire Synaptics in Approximately $7 Billion All-Stock Transaction

onsemi announced that it has entered into a definitive agreement to acquire Synaptics in an all-stock transaction valued at approximately $7 billion. The acquisition is expected to strengthen onsemi’s position in the rapidly growing Physical AI market by combining its leadership in intelligent power and sensing technologies with Synaptics’ expertise in Edge AI processing, wireless connectivity, and human-machine interface (HMI) solutions.

According to the companies, the combined portfolio will enable comprehensive solutions for intelligent systems used in automotive, industrial automation, robotics, smart devices, and other edge AI applications.

Under the terms of the agreement, Synaptics shareholders will receive 1.35 shares of onsemi common stock for each Synaptics share. The transaction represents a premium of approximately 19% based on Synaptics’ average share price over the ten trading days preceding the announcement.

Both companies’ boards of directors have unanimously approved the transaction, which is expected to close in 2027, subject to shareholder and regulatory approvals.

onsemi expects the acquisition to expand its total addressable market by approximately $30 billion, reaching an estimated $243 billion by 2030. The company also anticipates approximately $200 million in annual cost synergies and expects the transaction to be accretive to non-GAAP earnings per share within 18 months after closing.

Commenting on the acquisition, onsemi President and CEO Hassane El-Khoury said that the next wave of AI innovation will take place in intelligent physical systems capable of sensing, processing, and acting autonomously in real-world environments.