Onsemi announced on Thursday that it has entered into an agreement to purchase Synaptics (SYNA.O). Structured as an all-stock transaction valued at approximately $7 billion, the deal marks the largest acquisition in the chipmaker’s history, as onsemi seeks to expand its market footprint in AI-enabled devices and the emerging field of physical artificial intelligence.
Under the terms of the agreement, Synaptics shareholders will receive 1.350 shares of onsemi common stock for each share of Synaptics they hold. This exchange ratio represents a 19% premium to the volume-weighted average closing share prices of both companies over the preceding 10 trading days.
The acquisition is designed to accelerate the advancement of physical artificial intelligence — AI embedded directly into edge devices and machinery. Hassane El-Khoury, President and CEO of onsemi, stated that Synaptics’ connected computing platform complements onsemi’s established strengths across automotive, power and industrial markets.
“Synaptics brings us acceleration via a world-class connected computing platform that already has traction in our served markets,” said El-Khoury.
“The combination will create a market leader in what we refer to as physical AI,” he added.
Onsemi projects the transaction will expand its total addressable market by $30 billion to $243 billion by 2030.
In after-hours trading following the announcement, onsemi’s share price fell nearly 10%, while Synaptics stock rose more than 10%. El-Khoury noted that the chipmaker also intends to capture growth opportunities stemming from Synaptics’ human-machine interface business, alongside its broader technology portfolio and R&D initiatives targeting robotics and humanoid robot applications.
(Reprinted from https://news.eccn.com/）