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ON Semi tanks 24% following Synaptics deal as CEO defends core business
ON Semiconductor shares fell nearly 24% following the announcement of an all-stock deal to buy Synaptics. The acquisition aims to move the company into the edge AI and wireless connectivity market. CEO Hassane El-Khoury defended the company's core business amid the stock plunge.
What changed
The company announced its largest acquisition ever to expand into physical AI.
Live updates
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ON Semiconductor Stock Drops After $7 Billion Synaptics Acquisition
confidence 95%ON Semiconductor shares fell nearly 24% following the announcement of an all-stock deal to buy Synaptics. The acquisition aims to move the company into the edge AI and wireless connectivity market. CEO Hassane El-Khoury defended the company's core business amid the stock plunge.
What's confirmed:
- ON Semiconductor is acquiring Synaptics in an all-stock deal valued at $7 billion.
- The company's stock price dropped nearly 24% following the announcement.
- The acquisition is intended to expand ON Semiconductor into the edge AI market.
- CEO Hassane El-Khoury defended the company's core business.
- The move into physical AI increases the company's addressable market by $30 billion.
Still unconfirmed:
- TD Cowen believes the deal adds complexity to an already complicated model.
- Citi suggests the deal may help AI but requires more details.