ON•ON•ON Semiconductor agreed to acquire Synaptics in an all-stock transaction valued at $7 billion, offering Synaptics shareholders 1.35 ON Semiconductor shares per Synaptics share, a 19% premium to the trailing ten-day VWAP. In extended trading following the announcement, ON Semiconductor shares declined about 7.4% while Synaptics stock slipped 0.5%.
ON Semiconductor will acquire Synaptics in an all-stock deal valuing Synaptics at approximately $7 billion enterprise value. Synaptics shareholders will receive 1.35 ON Semiconductor shares per Synaptics share, representing a 19% premium to the ten-day volume-weighted average closing prices, with pro forma Synaptics ownership at roughly 12%.
Following the deal announcement, ON Semiconductor shares fell about 7.4% in extended trading, reflecting investor concerns over share dilution and integration risks. Synaptics stock dipped 0.5%, indicating more muted market expectations for transaction benefits.
The acquisition expands ON Semiconductor’s capabilities from power and sensing into connected compute and control, aiming to position the company at the center of Physical AI. By integrating Synaptics’ Edge AI compute processors and connectivity solutions, ON Semiconductor targets a total addressable market increase of $30 billion, reaching $243 billion by 2030.
The combination is projected to be accretive to non-GAAP EPS within 18 months and deliver about $200 million in annual synergies. The deal remains subject to customary regulatory approvals and is expected to bolster long-term margin expansion and customer engagement across automotive, industrial and AI end markets.
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