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(Sharecast News) - California-based semiconductor supplier On Semiconductor has agreed to buy Synaptics in a $7bn all-share deal.
Under the terms of the transaction, announced late on Thursday, Synaptics shareholders will receive 1.350 shares of Onsemi common stock for `each of their shares. This represents a premium of around 19% premium to the volume weighted average closing prices of both companies over the last 10 trading days.
Onsemi said the deal accelerates its evolution, "building on its strength in power and sensing to become a leading provider of intelligent systems - expanding from AI data centres into Physical AI".
It will also increase the company's total addressable market by $30bn to $243bn by 2030.
In addition, Onsemi said the deal positions the group "at the intersection of Power, Sense, Connected Compute and Control" - the four pillars of physical AI - which enable machines to sense, decide, act and adapt in the physical world.
Onsemi president and chief executive Hassane El-Khoury said: "As artificial intelligence moves beyond the cloud and into the physical world, including automotive and industrial, the next phase of innovation will depend on systems that can sense, decide, act and adapt in real time.
"This shift towards Physical AI will require Power, Sense, Connected Compute and Control to work together seamlessly. The addition of Synaptics helps position Onsemi at the intersection of these four pillars, enabling us to capture a significantly larger AI opportunity that extends beyond AI data centre and into edge applications. This transaction would add immediate connected compute capabilities, expand our software and ecosystem reach and position Onsemi to deliver greater value as customers increasingly seek intelligent systems."
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