ON Semiconductor (ON.O): ON Acquiring Synaptics for $7B; Maintain Neutral

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ON Semiconductor (ON.O): ON Acquiring Synaptics for $7B; Maintain Neutral

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26 Jun 2026 01:56:57 ET │ 12 pages

ON Semiconductor (ON.O)

ON Acquiring Synaptics for $7B; Maintain Neutral

CITI’S TAKE

ONsemi announced plans to acquire Synaptics in an all-stock transaction

Neutral with a fixed exchange ratio of 1.350 ON shares per SYNA share, implying a

Catalyst Watch: Upside, expires 13-SEP-26 ~19% premium, in line with the typical 15–25% range. This values

Price (25 Jun 26 16:00) US$118.74 Synaptics at an enterprise value of ~$7B (~6x TTM sales). The transaction

is expected to close in mid-2027 and be accretive to ON’s non-GAAP EPS Target price US$120.00

within 18 months, supported by ~$200M in annual synergies and gross Expected share price return 1.1%

margins consistent with its long-term model. We maintain our Neutral Expected dividend yield 0.0%

rating and await for more details on its AI-related opportunity at its Expected total return 1.1%

Analyst Day on Sep 16. Market Cap US$46,535M

Acquiring SYNA for AI and connectivity portfolio – ONsemi is acquiring Synaptics to

add Astra AI processors (featuring MPUs, MCUs, and integrated NPUs for multimodal

intelligence) and a wireless connectivity portfolio spanning Wi-Fi 6/6E/7/8, Atif MalikAC

Bluetooth, Thread, and Zigbee, complementing ON’s core power and analog focus. +1-415-951-1892

atif.malik@citi.com

Revenue Synergies. ON did not provide explicit revenue synergies but sees potential Kelsey Chia, CFA

upside to consensus Synaptics forecasts. Management views the portfolios as +1-415-951-1791

complementary with possible tailwinds, though not yet quantified. kelsey.chia@citi.com

James Bowlin

+1-415-951-1790

Robotics content. Designing cycle is shorter than automotive. Synaptics is supplying

james.bowlin@citi.com