Onsemi tries to acquire Allegro MicroSystems
Chip company Onsemi, valued at around $19.8 billion, has announced its intention to acquire Allegro MicroSystems for $35.10 per share in cash, with an implied enterprise value of $6.9 billion.
Over the past six months, Onsemi has made various attempts to discuss a potential transaction with Allegro. This most recent proposal was submitted 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 CEO 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 centre 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 maximises value for Allegro shareholders.”
