Onsemi's first public announcement: plans to acquire Allegro for $6.9 billion
Mar 06,2025
Onsemi has publicly acquired sensor integrated circuit supplier Allegro Microsystems for the first time, disclosing a $6.9 billion active takeover offer including debt.
Onsemi stated that its acquisition offer for Allegro is $35.10 per share, higher than the $34.50 proposed in September 2024. Previously reported, Onsemi has been collaborating with consultants to acquire Allegro in recent months.
Onsemi CEO Hassane El Khoury stated in a statement that this transaction "will bring together two highly complementary businesses.
Public tender offers are not common, but they are a merger and acquisition strategy aimed at exerting shareholder pressure on potential targets. This situation has occurred in the semiconductor industry before. In 2017, Broadcom proactively made a $103 billion acquisition offer to Qualcomm, but the deal was blocked with the help of the White House.
Allegro's stock price closed up 7% in New York, with a market value of approximately $4.9 billion. Onsemi's stock price rose 4.5% to $46.49, with a market value of $19.6 billion.
The transaction will require Onsemi to assume Allegro's approximately $507 million debt as of December 27, 2024.
As of December 31, 2024, Onsemi's cash and cash equivalents were $2.69 billion, while its total liabilities, including long-term debt, were $5.26 billion.
Recently, Allegro announced that long-term executive Mike Doogue will serve as the company's President and CEO, replacing CEO Vineet Nargolwala who has been in office for nearly three years.
Allegro develops advanced semiconductors and claims to be a leader in power and sensing solutions for motion control and energy-saving systems. These products are used for automotive engines and safety systems, as well as data centers and factories. Onsemi also develops power and sensing technologies for the automotive, industrial, and cloud computing fields.
Allegro's largest shareholder is Sanken Electric of Japan, holding approximately 32% of the shares.
Analysts warn that as the US electric vehicle market slows under the Donald Trump administration, car chip manufacturers may face sales pressure.
Onsemi Semiconductor announced that it has initiated a restructuring plan aimed at reducing operating costs and is expected to lay off approximately 2400 employees across all business units worldwide by 2025. In February of this year, Onsemi predicted that its first quarter revenue would be lower than Wall Street's expectations due to weak demand for its automotive chips
Onsemi stated that its acquisition offer for Allegro is $35.10 per share, higher than the $34.50 proposed in September 2024. Previously reported, Onsemi has been collaborating with consultants to acquire Allegro in recent months.
Onsemi CEO Hassane El Khoury stated in a statement that this transaction "will bring together two highly complementary businesses.
Public tender offers are not common, but they are a merger and acquisition strategy aimed at exerting shareholder pressure on potential targets. This situation has occurred in the semiconductor industry before. In 2017, Broadcom proactively made a $103 billion acquisition offer to Qualcomm, but the deal was blocked with the help of the White House.
Allegro's stock price closed up 7% in New York, with a market value of approximately $4.9 billion. Onsemi's stock price rose 4.5% to $46.49, with a market value of $19.6 billion.
The transaction will require Onsemi to assume Allegro's approximately $507 million debt as of December 27, 2024.
As of December 31, 2024, Onsemi's cash and cash equivalents were $2.69 billion, while its total liabilities, including long-term debt, were $5.26 billion.
Recently, Allegro announced that long-term executive Mike Doogue will serve as the company's President and CEO, replacing CEO Vineet Nargolwala who has been in office for nearly three years.
Allegro develops advanced semiconductors and claims to be a leader in power and sensing solutions for motion control and energy-saving systems. These products are used for automotive engines and safety systems, as well as data centers and factories. Onsemi also develops power and sensing technologies for the automotive, industrial, and cloud computing fields.
Allegro's largest shareholder is Sanken Electric of Japan, holding approximately 32% of the shares.
Analysts warn that as the US electric vehicle market slows under the Donald Trump administration, car chip manufacturers may face sales pressure.
Onsemi Semiconductor announced that it has initiated a restructuring plan aimed at reducing operating costs and is expected to lay off approximately 2400 employees across all business units worldwide by 2025. In February of this year, Onsemi predicted that its first quarter revenue would be lower than Wall Street's expectations due to weak demand for its automotive chips