ON Semiconductor Strikes $7 Billion All-Stock Deal for Synaptics

ON Semiconductor has reached an agreement to purchase Synaptics in an all-stock transaction valued at nearly $7 billion, marking the largest acquisition in its history.

The deal accelerates ON Semi's push into physical AI. The Arizona-based firm expects the move to expand its total addressable market by $30 billion to $243 billion by 2030 while bolstering its intelligence systems portfolio.

"This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position onsemi to deliver greater value as customers increasingly seek intelligent systems," said ON Semiconductor CEO Hassane El-Khoury.

Shareholder terms and expected timeline are now set. Under the agreement, Synaptics shareholders will receive 1.350 shares of ON Semiconductor common stock for each share they own. The transaction carries an equity value of approximately $6.2 billion and an enterprise value around $7 billion including debt, according to Bloomberg. Regulators must still approve the deal, which is projected to close in the middle of 2027.

ON Semiconductor will add one Synaptics board member to its own board. The combination is expected to generate roughly $200 million in annual synergies, Benzinga reported.

Market reaction split between the two companies. Shares of ON Semiconductor dropped about 6 percent in after-hours trading, while Synaptics stock surged approximately 13 percent.

The move fits a broader wave of AI-focused acquisitions. Technology companies are hitting acquisition mode in a race to strengthen AI capabilities. Qualcomm recently purchased infrastructure startup Modular to enhance its software offerings, and Salesforce announced plans this month to acquire AI customer service platform Fin for about $3.6 billion.

ON Semiconductor is a major producer of silicon carbide and is widely known for its power and sensing solutions for the automotive and electric vehicle industries. CEO Hassane El-Khoury is scheduled to appear on CNBC TV at 9:45 a.m. ET Friday to discuss the agreement.