Onsemi Reignites Acquisition Talks with Allegro MicroSystems for $6.46bln
Deal News | Mar 06, 2025 | Zawya
Onsemi, a U.S. chipmaker, has renewed its efforts to acquire Allegro MicroSystems for $6.46 billion. The offer of $35.10 per share represents a 31% premium over Allegro’s last closing price and is 1.73% higher than their previous offer. Previously, Onsemi had faced rejection from Allegro over the past six months. This acquisition reflects Onsemi's strategic move amidst challenges faced by automotive chipmakers due to decreased demand and excess inventory resulting from the COVID-19 pandemic. Onsemi's and Allegro's stocks have seen significant declines over the last year. Allegro is a key player in power management systems for electric and traditional vehicles.
Sectors
- Semiconductors
- Automotive
Geography
- United States – Both Onsemi and Allegro MicroSystems are U.S.-based companies, making the geographic focus of the article primarily the United States.
Industry
- Semiconductors – The article pertains to the semiconductor industry as it discusses Onsemi's attempt to acquire Allegro MicroSystems, both being players in the semiconductor sector. Semiconductors are critical components for various electronic systems, including those used in vehicles.
- Automotive – The relevance comes from Allegro's focus on providing power management chips for electric vehicles (EVs) and traditional vehicles, linking it with the automotive sector.
Financials
- $6.46 billion – The total value of the deal proposed by Onsemi to acquire Allegro MicroSystems.
- $35.10 per share – The offer price per share proposed by Onsemi, representing a 31% premium over Allegro's last closing price.
- 1.73% – Percentage increase of Onsemi's offer compared to its previous bid made in 2024.
- $4.9 billion – Allegro’s market capitalization as of the Tuesday before the announcement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Onsemi | Bidding Company | Company | A U.S. chipmaker attempting to acquire Allegro MicroSystems. |
| Allegro MicroSystems | Target company | Company | A company focusing on power management systems for vehicles, targeted for acquisition by Onsemi. |
| Reuters | Source | Company | Provided calculations on the total value of the deal. |
| LSEG | Market Capitalization Data Provider | Company | Provided data on Allegro’s market capitalization. |