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ON Semiconductor stock tanks nearly 24% following Synaptics deal
CNBC • • business
Key Points:
- ON Semiconductor announced its largest acquisition ever, planning to buy edge AI and wireless connectivity company Synaptics in an all-stock deal to expand into physical artificial intelligence.
- The acquisition is expected to increase ON Semiconductor’s addressable market by $30 billion, reaching $243 billion by 2030, and open new markets including AI-centric compute platforms.
- CEO Hassane El-Khoury emphasized that the deal complements ON Semiconductor’s existing product portfolio with no overlap, enhancing its Edge AI capabilities through Synaptics' Astra platform.
- Despite the acquisition announcement causing the company’s shares to experience their worst day since March 2020, El-Khoury reaffirmed confidence in the strength and growth of ON Semiconductor’s core business and data center operations.
- The acquisition is expected to close by mid-2027 and generate $200 million in annual synergies within 18 months.
