A rival offer has forced Onsemi to rethink the currency it is using to buy Synaptics.
The Phoenix power-chip maker will now pay $123 in cash for each target share, a package worth about $5.7B. When the two sides first announced the combination in June, the price came entirely in stock and carried a headline value near $7B. A slide in Onsemi’s own shares had since hollowed out what that paper was worth.
An unsolicited approach from another, unnamed suitor pushed Synaptics directors to demand firmer terms, and they endorsed the rewritten agreement without dissent.
Onsemi will draw on existing cash and about $2.45B of committed borrowing, with no condition that ties closing to the financing. Chief executive Hassane El-Khoury said the all-cash shape gives his shareholders a better deal while the logic behind the tie-up is unchanged: Synaptics brings sensing and internet-of-things connectivity to a business known for power electronics.
Traders read it the same way. The target’s stock rose about 14%, landing just below the offer, while the buyer added roughly 6%.
The merger is expected to close in mid-2027 if investors and regulators sign off.
