Loading...
News Article

onsemi to acquire Allegro MicroSystems

News

onsemi has disclosed details of a proposal submitted to the Board of Directors of Allegro MicroSystems to acquire the company for $35.10 per share in cash for each share of Allegro’s common stock on a fully diluted basis at an implied enterprise value of $6.9 billion.

onsemi has made numerous attempts over the past six months to enter into constructive discussions regarding a potential transaction. The most recent Proposal was submitted to Allegro on February 12, 2025, and represents an increase over an initial $34.50 per share proposal submitted on September 2, 2024.

“We believe the combination of onsemi and Allegro would bring two highly complementary businesses together, benefitting our respective customers and delivering immediate value to Allegro shareholders,” said Hassane El-Khoury, President and Chief Executive Officer of onsemi. “The Allegro team has built an impressive leadership position in magnetic sensing and power ICs for the automotive and industrial end-markets. Together, Allegro’s unique product portfolio and onsemi’s differentiated intelligent power and sensing technologies would create a diversified leader in automotive, industrial and AI data center applications.”

El-Khoury continued, “While we would have preferred to reach an agreement with Allegro privately, the decision to make our proposal public reflects our conviction in the merits of a combined company, which we believe is in the best interests of Allegro and onsemi shareholders. We urge the Allegro Board and management team to engage in good faith discussions with onsemi’s management team regarding the proposed transaction, which maximizes value for Allegro shareholders.”

The combination between onsemi and Allegro would create a natural strategic fit given both parties’ respective strengths within the automotive and industrial markets:

Compelling Strategic Rationale That Delivers Benefits for Customers and Employees: Allegro’s product offering complements onsemi’s leadership in intelligent power and sensing for automotive, industrial and AI data center applications. A combination would bring together two strong teams with a shared culture of innovation and access to exciting new development opportunities within an expanded organization.

Delivering Immediate and Certain Value for Allegro Shareholders: Under the terms of the Proposal, onsemi’s all-cash $35.10 per share offer represents a 57% premium to Allegro’s closing share price on February 28, 2025, the last trading day prior to media reports regarding onsemi’s interest in acquiring Allegro.

Clear Path to Completion and Plan for Financing: onsemi has assembled a team of highly experienced advisors and is prepared to move swiftly and efficiently to complete due diligence and negotiate a mutually agreeable definitive agreement. The company does not anticipate any financing contingencies and intends to fund the potential transaction with a combination of committed financing, cash on hand, and funds available under its existing revolving credit facility.

Engagement History

onsemi first approached Allegro regarding a potential all-cash acquisition on September 2, 2024, via a formal letter with an initial all-cash $34.50 per share proposal. A follow-up letter was sent December 10, 2024, reaffirming onsemi’s desire to transact and gain access to find a pathway to diligence. Subsequently, onsemi made another attempt towards constructive engagement, most recently submitting a letter on February 12, 2025, improving its all-cash proposal to $35.10 per share, while also highlighting its numerous efforts to meaningfully engage with Allegro.

onsemi's request since September 2, 2024, has been consistent: to advance the possibility of this valuable outcome for shareholders through rigorous management-to-management dialogue and pursuing the requisite diligence and scoping of regulatory requirements in order to expeditiously move towards finalization of a transaction.

Avoiding unscheduled downtimes in semicon fabs with preventive vacuum service
Nu Quantum partners with the University of Sussex, Cisco, and Infineon
NVIDIA continues to dominate global semiconductor sector
Aeluma to showcase sensor and silicon photonic solutions
Advancing European sovereignty in HPC with RISC-V
The rise of chiplets and simplified interconnectivity
Critical Manufacturing to show at APEX 2025
ASML and imec sign strategic partnership agreement
Renesas extends mid-class AI processor line-up
Renesas and Altium introduce Renesas 365, Powered by Altium
Infineon brings RISC-V to the automotive industry
Baya Systems 'revolutionises' AI scale-up and scale-out
onsemi to acquire Allegro MicroSystems
TASMIT launches Glass Substrate Inspection System
The quest for room-temperature superconductors
Agile Analog delivers anti-tamper solution to fabless company in Taiwan
VTT and IQM launch first 50-qubit quantum computer developed in Europe
Partnership discussions for six UK tech firms initiated in South Korea
Water usage in semiconductor manufacturing to double by 2035
Saras Micro Devices participates in CHIPS National Advanced Packaging Manufacturing Program initiatives
Terecircuits becomes National Semiconductor Technology Center member
Beyond silicon
Marvell demonstrates leading 2nm silicon for accelerated infrastructure
ACM Research announces China qualification
Making sure that AI and High Bandwidth Memory stack up
TSMC invest $100 billion in U.S.
Attopsemi expands its I-fuse OTP portfolio on X-FAB’s 180nm Platform
sureCore collaborates with KU Leuven
Myriota and Nordic Semiconductor partner
Premier electronics packaging conference celebrates 75 years of serving the industry
Analog Devices wins up to $105 million in Federal CHIPS funding
GlobalFoundries and MIT collaborate
×
Search the news archive

To close this popup you can press escape or click the close icon.
Logo
x
Logo
×
Register - Step 1

You may choose to subscribe to the Silicon Semiconductor Magazine, the Silicon Semiconductor Newsletter, or both. You may also request additional information if required, before submitting your application.


Please subscribe me to:

 

You chose the industry type of "Other"

Please enter the industry that you work in:
Please enter the industry that you work in: