ON Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at nearly $7 billion to strengthen its focus on physical artificial intelligence technology.
The Arizona-based company said the partnership will increase its total addressable market by $30 billion to $243 billion by 2030 and strengthen its intelligence systems portfolio. This is also the company’s largest deal to date.
On Semi’s stock price fell about 6% after the bell. synapse It rose about 13%.
“This transaction adds instantly connected computing capabilities, expands the reach of our software and ecosystem, and positions ONSemi to deliver greater value as customers increasingly demand intelligent systems,” said Hassan El Khoury, CEO of ON Semiconductor.
Tech companies are in acquisition mode as they rush to enhance their AI capabilities.
Qualcomm acquired infrastructure startup Modular this week to boost its software capabilities. Salesforce announced this month that it would acquire AI customer service platform Fin for about $3.6 billion.
The acquisition of On Semi-Synaptics is expected to close in mid-2027. As part of the acquisition, Synaptics shareholders will receive 1.350 shares of On Semiconductor common stock for each share they own.
On Semi also synapse Board member.
On Semiconductor is a leading silicon carbide manufacturer known for its power and sensing solutions for the automotive and electric vehicle industries.
Watch On Semi CEO Hassan El Khoury appear on CNBC TV on Friday at 9:45 a.m. ET to discuss the deal. Watch in real time on CNBC+ or CNBC Pro streams.
