In a significant move to bolster its artificial intelligence offerings, On Semiconductor has announced a nearly $7 billion all-stock deal to acquire Synaptics. This strategic acquisition is expected to increase On Semiconductor's total addressable market by $30 billion to $243 billion by 2030, while strengthening its portfolio of intelligent systems. The deal, the largest in the company's history, will provide On Semiconductor with immediate connected compute capabilities, expanded software and ecosystem reach, and enhanced positioning to deliver value to customers seeking intelligent systems. On Semiconductor CEO Hassane El-Khoury highlighted the benefits of the transaction, citing the potential to drive growth and innovation in the company's AI technology. The acquisition is part of a broader trend in the technology industry, where companies are pursuing strategic acquisitions to enhance their AI capabilities. With the deal expected to close in mid-2027, On Semiconductor will issue 1.350 shares of its common stock to Synaptics shareholders for each share held, and will also add a Synaptics board member. As a leading producer of silicon carbide and a major player in the automotive and electric vehicle industries, On Semiconductor is well-positioned to leverage Synaptics' expertise in connected computing to drive growth and innovation in the AI space.

Source: CNBC