onsemi has signed a definitive agreement to acquire Synaptics in an all-stock deal worth about $7 billion, marking a major step in its strategy to evolve from a power and sensing semiconductor supplier into a provider of intelligent, integrated systems for the growing Physical AI market.
Under the agreement, Synaptics shareholders will receive 1.35 shares of onsemi common stock for each Synaptics share. The transaction reflects an enterprise value of roughly $7 billion, offering a 19% premium based on the companies’ average closing share prices over the previous ten trading days. Once completed, Synaptics investors are expected to own nearly 12% of the combined company.
The merger will unite onsemi’s strengths in power semiconductors, intelligent sensing, and automotive technologies with Synaptics’ expertise in Edge AI processors, human-machine interface solutions, and wireless connectivity. Together, the companies aim to deliver integrated system-level platforms combining power management, sensing, connected computing, and control for applications such as autonomous vehicles, industrial robotics, AR/VR devices, and intelligent edge systems.
A significant addition to onsemi’s portfolio will be Synaptics’ Astra Edge AI platform, which combines AI processors, neural processing units (NPUs), and wireless technologies including Wi-Fi, Bluetooth, and GPS within an open software ecosystem. This is expected to enhance onsemi’s capabilities across edge AI, automotive, industrial automation, AI infrastructure, and data center power solutions.
The company estimates the acquisition will expand its total addressable market by approximately $30 billion, reaching about $243 billion by 2030. It also expects the complementary product portfolios to drive cross-selling opportunities, speed up innovation, and increase semiconductor content in customer platforms through embedded software and intellectual property.
Financially, onsemi projects around $200 million in annual cost synergies and expects the acquisition to contribute positively to non-GAAP earnings per share within 18 months of closing. The company also plans to continue its existing capital return policy throughout the integration process.
The boards of both companies have unanimously approved the transaction, which is expected to close in mid-2027, subject to shareholder approval, regulatory clearances, and customary closing conditions. Following completion, one Synaptics board member is expected to join the onsemi Board of Directors.
