Synaptics shares surge after onsemi resets buyout to $123-per-share cash deal

Synaptics (SYNA) shares rose 14.23% after onsemi increased its all-cash buyout offer to $123 per share, valuing the company at $5.7B. The stock traded near the offer price, reflecting merger arbitrage activity. Synaptics' board chose the deal over a competing proposal, citing certainty and premium value. The company recently launched AI-focused innovations, supporting the acquisition's strategic rationale.

ON Semiconductor (NASDAQ:ON) agreed to acquire Synaptics (NASDAQ:SYNA) for $5.7B in cash, expecting $200M in synergies within 18 months. Analyst Quinn Bolton reiterated a Buy rating and $116 price target, citing expanded TAM and immediate earnings accretion. The deal is expected to close mid-2027, subject to approvals.

Synaptics (SYNA) rose 13.53% to $120.51 on news of an amended merger agreement with onsemi, which will acquire SYNA for $123 per share, valuing the deal at $5.7B. The transaction is expected to close by mid-2027, pending approvals.

ON Semiconductor (ON) shares rose 6.06% after replacing a $7B stock bid for Synaptics (SYNA) with a $5.7B cash offer. Synaptics shares jumped 14%. The deal is expected to be immediately accretive to ON's earnings. ON plans to fund the acquisition with cash and debt. The deal is subject to shareholder and regulatory approval, targeting mid-2027 completion.

ON Semiconductor (ON) and Synaptics (SYNA) stocks rose 5% and 14% respectively after revising their merger deal. ON will now acquire SYNA for $123 per share in cash, valuing the deal at $5.7B, down from the previous $7B all-stock agreement. ON expects the deal to boost adjusted earnings per share post-closing, with approval expected by mid-2027.

The S&P 500 and NASDAQ surged in a morning rally led by tech stocks. NVIDIA reached a new intraday high of $237.00. On Semiconductor revised its all-cash acquisition of Synaptics to $5.7 billion. Gasoline prices in the U.S. declined.