Onsemi just made its biggest move in years. The power and sensing semiconductor company announced plans to acquire Synaptics in an all-stock transaction valued at approximately $7 billion, creating a combined entity that aims to dominate the emerging Edge AI and Physical AI markets.
Under the terms of the deal, Synaptics shareholders will receive 1.350 shares of onsemi for each Synaptics share they hold. That represents a 19% premium over the volume-weighted average closing prices from the preceding ten trading days. Once the transaction closes, former Synaptics shareholders will own approximately 12% of the combined company on a fully diluted basis.
The deal is expected to close around mid-2027, pending Synaptics shareholder approval and the usual regulatory clearances. Onsemi also authorized a $6 billion share repurchase program effective January 2026. The company projects $200 million in annual synergies from the combination and expects the acquisition to become accretive to its non-GAAP earnings per share within 18 months of closing, with gross margins aligning to onsemi’s established long-term model.
The strategic logic: why Synaptics, why now
Synaptics specializes in Edge AI processing, human-machine interface solutions, and wireless connectivity. Onsemi has built its reputation on power semiconductors and sensing technologies, particularly for the automotive and industrial markets.
