ON Stock Falls 9% After-Hours While SYNA Soars 12% On $7B Synaptics Takeover

• The acquisition is expected to expand onsemi’s total addressable market to $243 billion by 2030, an increase of $30 billion, the company said.
• The transaction is expected to be accretive to onsemi’s adjusted earnings per share within 18 months of closing.
• The deal is expected to close in mid-2027, subject to approval by Synaptics shareholders, regulatory clearances and other customary conditions.

Shares of onsemi (ON) fell 9% in after-hours trading on Thursday after the company announced it would acquire Synaptics (SYNA) in an all-stock deal valued at around $7 billion.

Synaptics shares, meanwhile, jumped 12% after-hours, after closing down 3% in the regular trading session.

ON, SYNA Deal Terms

Under the agreement, onsemi will issue 1.350 shares of its common stock for each share of Synaptics. Going by ON’s closing price on Thursday, 1.35 shares is valued at $160.299, representing a significant premium to SYNA’s closing price of $125.62.

According to On Semi, the purchase price represents about 19% premium to the volume-weighted average closing prices of On Semi and Synaptics over the last 10 trading days.

Upon completion, Synaptics shareholders will own about 12% of the combined company on a fully diluted basis, the company said.

Strategic Rationale

The deal aims to strengthen onsemi’s position in Physical AI by combining its power and sensing technologies with Synaptics’ expertise in Edge AI compute, human-machine interfaces, and wireless connectivity. The acquisition is expected to expand onsemi’s total addressable market to $243 billion by 2030, an increase of $30 billion, with growth opportunities in automotive, industrial, robotics, and AR/VR applications, the company said.

With the acquisition, onsemi is now trying to move from being primarily a supplier of power and sensing components to offering more complete solutions for Physical AI.

Financial Impact

The transaction is expected to be accretive to onsemi’s adjusted earnings per share within 18 months of closing. The companies anticipate realizing $200 million in annual cost synergies. Gross margins are projected to remain consistent with onsemi’s long-term targets. Both companies said they will maintain their existing capital return policies until the deal closes.

Timeline And Approvals

The deal is expected to close in mid-2027, subject to approval by Synaptics shareholders, regulatory clearances, and other customary conditions. One member of Synaptics’ board is expected to join onsemi’s board following the transaction. Both boards have unanimously approved the deal.

ON, SYNA Stocks: How Did Retail Traders React?

On Stocktwits, retail sentiment around ON stayed within the neutral territory over the past 24 hours, while message volume remained at high levels.

Meanwhile, sentiment around SYNA jumped from bearish to neutral territory, accompanied by normal levels of retail chatter.

This is one of those classic semiconductor consolidation moves where the strategic narrative matters as much as the financials -- power + sensing from $ON combined with edge AI + human interface from $SYNA, all wrapped into the “physical AI” theme, a Stocktwits user wrote.

Another user, however, opined that On Semiconductors paid “way too much.”

While ON stock has gained about 109% year-to-date, SYNA has gained about 66%. 

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