Onsemi intends to acquire Allegro MicroSystems

Onsemi has made public its proposal to acquire Allegro MicroSystems for $35.10 per share in cash, valuing the company at about $6.9 billion. onsemi had been in negotiations with Allegro for several months and submitted its latest offer on February 12, 2025, an increase from its initial offer of $34.50 per share in September 2024.

Onsemi claims that by combining two very complementary companies, the acquisition will result in a stronger semiconductor industry player. With its own smart power and sensing solutions, the business finds Allegro's leadership in magnetic sensing and power ics for the automotive and industrial industries to be strategic. Onsemi believes that the combined portfolio will enhance its position in industrial, automotive and artificial intelligence data center applications.

To underscore the strategic significance of the deal, onsemi also clarified its choice to make its proposal public, saying that while it would have preferred to negotiate in secret, it ultimately opted for transparency. The company claims that the offer optimizes value for Allegro owners and recommends that Allegro's board of directors engage in dialogue.

Given their respective strengths in the automotive and industrial markets, the combination of onsemi and Allegro will create a natural strategic fit.

Clear path to completion and financing plan: onsemi has assembled a team of experienced advisors ready to complete due diligence quickly and efficiently and negotiate a mutually agreed definitive agreement. The Company does not anticipate any financing contingencies and intends to fund the potential transaction through a combination of committed financing, cash on hand and funds available under its existing revolving credit facility.

Compelling strategic rationale for customer and employee benefits: Allegro's products complement onsemi's leadership in smart power and sensing for automotive, industrial and artificial intelligence data center applications. The merger will bring together two strong teams with a shared culture of innovation and access to exciting new growth opportunities within the enlarged organization.

Deliver immediate and certain value to Allegro shareholders: Under the terms of the proposal, onsemi's all-cash offer of $35.10 per share represents a 57 percent premium to Allegro's closing price on February 28, 2025, the last trading day prior to media reports of onsemi's interested in acquiring Allegro.