onsemi and Synaptics Amend Merger Agreement, Lowering Cash Price
onsemi and Synaptics Amend Merger Agreement, Lowering Cash Price
onsemi and Synaptics amended their June 25, 2026 merger agreement, under which onsemi will acquire Synaptics for $123 per share in cash, an aggregate value of about $5.7 billion versus roughly $7 billion previously. The transaction is expected to be immediately accretive to onsemi's non-GAAP earnings per share and is financed through cash on hand and committed debt from Morgan Stanley. Closing is expected by mid-2027, subject to Synaptics shareholder approval and regulatory clearances; the FTC has approved and other regulators are reviewing.
The deal combines power, sensing and human-machine interface semiconductor portfolios and targets insourcing of part of Synaptics' production, which could reshape supply and competition in automotive, industrial and AI data center end markets.
Key facts
| Companies | onsemi, Synaptics Incorporated |
|---|---|
| Investment | Approximately $5.7 billion aggregate value ($123 per share in cash), versus approximately $7 billion under the prior agreement; $200 million annual run-rate synergies previously announced |
| Timing | 2026-06-25, 2026-10-01, 2027-mid-year expected closing, 2026-09-15 Synaptics definitive proxy statement filed |
| Partners | Synaptics Incorporated, Morgan Stanley |
| End uses | automotive, industrial, AI data center, human-machine interface, sensing |
| Chemicals | Silicon carbide, Silicon |
Market context
Power semiconductors, analog and mixed-signal chips, and sensing devices are core building blocks for electronics that convert, control and measure energy. Power devices such as silicon carbide and silicon MOSFETs and IGBTs manage current in electric vehicles, industrial motor drives and data center power supplies, while image and other sensors feed automotive safety systems and factory automation. Human-machine interface chips handle touch, display and input functions in consumer and industrial products. Demand in these areas tracks automotive electrification, factory automation spending and the rapid build-out of AI data center infrastructure, which requires high-efficiency power conversion. When two suppliers combine portfolios, buyers often watch for changes in product availability, qualification timelines and pricing, especially where one party moves part of a partner's production in-house. Such moves can tighten competition in specialized segments or shift negotiating leverage with foundries and assembly providers. Investors typically focus on how consolidation affects margins and scale in these mature but cyclical markets.
Source: official release on onsemi.com. Summary and context written by Market Krystal.
About onsemi
Electronics & semiconductors.
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