ON: Announces Acquisition of Synaptics

Research evidence excerpt

ON: Announces Acquisition of Synaptics

Semiconductors

ON SEMICONDUCTOR CORP. (ON) June 26, 2026

ON: Announces Acquisition of Synaptics Rating:

Peer PerformON announced a definitive agreement to acquire Synaptics (SYNA, not rated) in an all- Price:

stock transaction representing a total enterprise value of ~$7bn, a ~19% premium to $118.74

SYNA's 10-day VWAP. The acquisition is expected to be accretive to non-GAAP EPS Price Target:

NAwithin 18 months of close, with an expected $200 million in annual synergies and

gross margins consistent with ON's long-term financial model. The deal is expected Source: FactSet, Wolfe Research

to close mid-CY27. ON held a call regarding the planned acquisition; we highlight our Priced as of 06/25/26

key takeaways below.

In total, we expect the deal to be ~5% accretive to ON CY28 EPS, adding

$0.30 of earnings following full synergies, driving $6.08 total company EPS. The

deal diversifies ON's business, and will be accretive to GM, consistent with ON

management's efforts to move into higher GM businesses (such as higher margin Treo Chris Caso

power devices). ccaso@wolferesearch.com (646) 582-9360

View Chris’s ResearchHowever, there's also no obvious synergies between the two businesses, aside from

View ON Model

the opex benefits from Synaptics being absorbed into a larger company, along with View Comp Table

larger sales and distribution, and common customers. There appear to be minimal

manufacturing cost synergies, since most Synaptics products can't be manufactured Lizlpate@wolferesearch.comPate

at ON fabs. (646) 582-9362

As such, we view the main benefit to ON to be one of diversification. ON management Nicholas Welsch-Lehmann nwelschlehmann@wolferesearch.com