Onsemi to Buy Synaptics in $7 Billion All-Stock Deal
The acquisition would extend onsemi’s reach into edge AI and expand its total addressable market to $243 billion by 2030.
**Onsemi (ON) agreed to acquire Synaptics Incorporated (SYNA) in an all-stock transaction valued at approximately $7 billion**, positioning itself as a leader in intelligent systems for physical artificial intelligence. The deal reflects a fixed exchange ratio of 1.350 onsemi shares for each Synaptics share, representing a 19% premium to the 10-day volume-weighted average closing prices of both companies. The transaction is expected to close in mid-2027, pending approval by Synaptics stockholders and regulatory clearances.
Under the terms, Synaptics shareholders will receive onsemi common stock, implying pro forma ownership of approximately 12% for Synaptics stockholders on a fully diluted basis. One member of the Synaptics board is expected to join onsemi’s board upon completion. The all-stock structure allows Synaptics shareholders to participate in the combined company’s growth, which the companies project will expand onsemi’s total addressable market by $30 billion to $243 billion by 2030.
The acquisition is designed to accelerate onsemi’s evolution from a provider of power and sensing technologies to a global leader in intelligent systems for physical AI. By integrating Synaptics’ edge AI compute franchise and portfolio of human-machine interface and wireless connectivity solutions, onsemi aims to extend its capabilities beyond its current focus on power and sensing to deliver integrated system-level solutions. "As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act and adapt in real time," said Hassane El-Khoury, President and CEO of onsemi. "This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly. The addition of Synaptics helps position onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data centers and into edge applications."
Synaptics, a provider of edge AI and human-machine interface solutions, brings a differentiated portfolio that includes its Astra platform, which combines AI processors, neural processing units (NPUs), and wireless connectivity spanning Wi-Fi, Bluetooth, and GPS. The platform is designed to enable multimodal intelligence at the edge, supporting applications in autonomous driving, robotics, and augmented/virtual reality. The combination of Synaptics’ edge AI capabilities with onsemi’s expertise in automotive, industrial, and AI data center markets is expected to deepen customer engagements and drive higher dollar content per platform.
The deal follows a broader trend of consolidation in the semiconductor sector as companies seek to expand their capabilities in AI and edge computing. The transaction is expected to be accretive to onsemi’s non-GAAP earnings per share within 18 months of closing, with projected annual synergies of $200 million. onsemi also reaffirmed its commitment to maintaining its existing capital return policy during the pendency period.
Regulatory approvals and Synaptics stockholder consent are among the key conditions for closing the transaction. The companies reiterated their previously provided financial outlooks for the current fiscal quarters, signaling confidence in their standalone operations ahead of the deal’s completion.