ON Semiconductor revises Synaptics acquisition to $123‑per‑share cash deal worth $5.7 billion
ON Semiconductor announced that it will acquire Synaptics for $123 per share in cash, reducing the transaction value to about $5.7 billion from the previously announced $7 billion all‑stock deal. The amendment follows a competing unsolicited bid and is expected to close by mid‑2027, subject to shareholder and regulatory approvals. ON plans to fund the purchase with cash on hand and roughly $2.5 billion of term‑loan debt, and the Federal Trade Commission has already approved the merger.
Why it matters
Bank of America estimates the revised structure could lift ON’s adjusted EPS by roughly 11 % in calendar 2027 and 15 % in 2028, making the deal immediately accretive. Analysts such as Tristan Gerra and Baird maintain Hold ratings with a $108 price target for ON, reflecting confidence in the earnings boost.
Key facts
- 1The cash offer is $123 per share for Synaptics. finance.yahoo.com
- 2The revised transaction value is approximately $5.7 billion. investing.com
- 3ON will fund the deal with cash on hand and about $2.5 billion of term‑loan debt. proactiveinvestors.com
- 4The merger is expected to close by mid‑2027. proactiveinvestors.com
- 5The U.S. Federal Trade Commission has already approved the transaction. proactiveinvestors.com
- 6Bank of America projects EPS growth of roughly 11 % in calendar 2027 and 15 % in calendar 2028. proactiveinvestors.com
Open questions
- Synergy estimates differ across sources ($90 m/$175 m vs $200 m annual target).
- EPS growth forecasts are provided only by Bank of America and may not reflect other analysts.
Summary written by AlphAI from 8 of 8 sources. Not investment advice. Figures are as stated by the linked sources.