BUZZ-Onsemi drops, Synaptics rises on $7 billion all-stock deal to tap 'physical AI'

Synaptics Incorporated
ON Semiconductor Corporation

Synaptics Incorporated

SYNA

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ON Semiconductor Corporation

ON

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** Shares of Synaptics SYNA.O up 4.4% premarket, while ON Semiconductor ON.O seen down ~8% after a deal announcement

** Onsemi to acquire Synaptics in an all-stock transaction valued at about $7 billion (enterprise value), marking its largest-ever acquisition

** SYNA stockholders will receive 1.350 shares of Onsemi common stock for each share of Synaptics common stock

** Deal aimed at boosting exposure to AI-enabled and "physical AI" applications, embedding AI into devices and machines

** TD Cowen analysts say the deal could "dilute" Onsemi's automotive and datacenter investment narrative, and add complexity, with synergies and earnings accretion seen as limited in the near term

** If deal is terminated, Synaptics would pay Onsemi $235 million under certain conditions, while Onsemi would pay Synaptics $320 million for regulatory termination issues

** Onsemi is up 119.3% YTD while SYNA has gained ~70%




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