On Semiconductor to Buy Synaptics for $7 Billion in 19% Premium All-Stock Deal
ON•On Semiconductor will acquire Synaptics in a $7 billion all-stock deal at an exchange ratio of 1.35 On shares per Synaptics share, representing a 19% premium. The transaction boosts On’s addressable market by $30 billion to an estimated $243 billion by 2030 and positions it at the forefront of Physical AI solutions.
1. Deal Terms and Valuation
On Semiconductor agreed to acquire Synaptics in an all-stock transaction valuing Synaptics at approximately $7 billion. Under the terms, Synaptics shareholders will receive 1.35 On shares per Synaptics share, reflecting a 19% premium and resulting in an expected 12% holding of the combined company.
2. Strategic Rationale
The acquisition aims to strengthen On’s footprint in Physical AI by integrating Synaptics’ AI-native compute, connectivity and human-machine interface expertise with On’s power, sensing and control capabilities. This combination is projected to expand On’s addressable market by $30 billion to $243 billion by 2030.
3. Governance and Approvals
Boards of both companies have unanimously approved the merger. The deal, subject to customary closing conditions, positions the combined entity to deliver end-to-end edge AI solutions across automotive, industrial and consumer segments.
