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Onsemi Acquires Synaptics in $7 Billion Deal as M&A Activity Accelerates

Onsemi’s €6.4 billion acquisition of Synaptics signals continued consolidation across the semiconductor industry.
Semiconductor.

Onsemi has agreed to acquire Synaptics in an all-stock transaction valued at approximately €6.4 billion, marking its largest acquisition to date as consolidation continues across the semiconductor sector.


Under the terms of the agreement, Synaptics shareholders will receive 1.350 Onsemi shares for each Synaptics share, representing a 19% premium to the company’s 10-day volume-weighted average price. The deal has been unanimously approved by both boards and is expected to close in mid-2027, subject to regulatory and shareholder approvals.


Onsemi said the combined company would have approximately €7.2 billion in pro forma revenue based on 2026 figures and expects to identify around €184 million in annual cost synergies. The company also said the transaction is expected to be accretive to non-GAAP earnings per share within 18 months of completion. Following the deal, Synaptics shareholders are expected to own about 12% of the combined company.


Synaptics’ portfolio includes its Astra platform, which integrates AI processing units, neural processing capabilities, and connectivity technologies including Wi-Fi, Bluetooth and GPS, alongside open-source software. The platform is used in edge computing applications such as autonomous driving systems, robotics, industrial automation and AR/VR devices.


Onsemi, which has a market capitalization of approximately €42.3 billion, said the acquisition is intended to strengthen its position in “physical AI” applications, where computing and intelligence are embedded directly into hardware systems rather than centralized in cloud infrastructure.


The transaction comes amid increased merger and acquisition activity in the semiconductor industry as companies seek scale and broader capabilities in AI-related hardware markets. Analysts expect continued consolidation as firms respond to rising demand for AI-enabled computing systems.



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