Onsemi has signed a definitive agreement to acquire Synaptics in an all-stock transaction with an enterprise value of approximately $7 billion. Synaptics shareholders will receive 1.350 shares of onsemi common stock for each share they own, representing a 19% premium based on the companies’ volume-weighted average closing prices over the previous 10 trading days. Following the deal, Synaptics shareholders are expected to own approximately 12% of the combined company on a fully diluted basis.
Skadden, Arps, Slate, Meagher & Flom is serving as legal counsel to onsemi, while Baker McKenzie is advising Synaptics. Morgan Stanley is acting as lead financial adviser to onsemi, with J.P. Morgan Securities also advising the company. Qatalyst Partners is serving as Synaptics’ exclusive financial adviser.
The acquisition would add Synaptics’ Astra edge computing platform, neural processing technology, wireless connectivity portfolio, and human-machine interface products to onsemi’s power and sensing business. Onsemi expects the combination to expand its total addressable market by about $30 billion to $243 billion by 2030, with applications spanning autonomous driving, robotics, and augmented and virtual reality.
Onsemi expects the transaction to generate $200 million in annual synergies and become accretive to non-GAAP earnings per share within 18 months of closing. One Synaptics director is also expected to join onsemi’s board.
The companies expect the deal to close in mid-2027, subject to Synaptics shareholder approval, regulatory clearances, and other customary conditions. Onsemi and Synaptics also reiterated their previously issued quarterly financial outlooks.
