Synaptics Up 14.08% on ON Semiconductor’s $123, $5.7…
By Tobi Opeyemi Amure
AI summary of the source article
ON Semiconductor and Synaptics revised their June merger agreement from an all-stock deal into an all-cash transaction at $123 per share, totaling approximately $5.7 billion. The original June agreement was structured as a fixed exchange of 1.350 ON Semiconductor shares per Synaptics share, valued at about $7 billion at signing. However, subsequent declines in ON Semiconductor stock reduced the implied offer value to $108.11 by October 1. The new $123 cash price represented a 13.78% premium over that market-implied level, prompting Synaptics shares to climb 14.08% to $121.10 while ON Semiconductor shares rose 6.01% to $84.89.
Why it matters
The revised cash deal lowers the headline acquisition cost for ON Semiconductor while delivering Synaptics shareholders cash value exceeding the depreciated stock exchange ratio.
Key facts
- ON Semiconductor agreed to acquire Synaptics for $123 per share in cash, totaling approximately $5.7 billion.
- The amended cash transaction replaced an initial fixed exchange ratio of 1.350 ON Semiconductor shares per Synaptics share.
- Synaptics shares rose 14.08% to $121.10 on October 2, while ON Semiconductor shares rose 6.01% to $84.89.