ON Semiconductor to Acquire Synaptics in $7 Billion All-Stock Deal
Quick Look
- ON Semiconductor announced an all-stock deal to acquire Synaptics for nearly $7 billion, aiming to boost its physical AI technology and expand its total addressable market by $30 billion by 2030.
- ON Semi shares fell 6%, while Synaptics shares rallied 13% post-announcement.
AI-generated summary
Why It Matters
ON Semiconductor's acquisition of Synaptics is its largest deal to date, aimed at bolstering its physical artificial intelligence technology and expanding its intelligence systems portfolio.
ON Semiconductor has agreed to buy Synaptics in a nearly $7 billion all-stock deal to bolster its push into physical artificial intelligence technology.
The Arizona-based company said the deal will give its total addressable market a $30 billion boost to $243 billion by 2030 and strengthen its intelligence systems portfolio. It's the company's largest deal to date.
Shares of ON Semi fell about 6% after the bell, while shares of Synaptics rallied about 13%.
"This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position onsemi to deliver greater value as customers increasingly seek intelligent systems," said ON Semiconductor CEO Hassane El-Khoury.
Technology companies are hitting acquisition mode as they race to strengthen their AI capabilities.
Qualcomm this week snapped up infrastructure startup Modular to beef up its software capabilities. This month, Salesforce said it will buy AI customer service platform Fin for about $3.6 billion.
The ON Semi-Synaptics deal is expected to close in the middle of 2027. As part of the acquisition, Synaptics shareholders will receive 1.350 shares of ON Semiconductor's common stock per share held.
ON Semi will also add a Synaptics board member.
On Semiconductor is a major producer of silicon carbide and is widely known for its power and sensing solutions for the automotive and electric vehicle industries.
Tune in at 9:45 a.m. ET on Friday as ON Semi CEO Hassane El-Khoury joins CNBC TV to discuss the deal. Watch in real time on CNBC+ or the CNBC Pro stream.
What to Watch
AI outlook — possibilities, not facts
The ON Semi-Synaptics deal is expected to close in the middle of 2027.
Likely · Within months
Open Questions
- What specific products or technologies will result from this integration?
- How will the integration of Synaptics impact ON Semi's existing product lines?
- What are the long-term financial implications for ON Semi shareholders?
