Synaptics Incorporated (NASDAQ:SYNA) shares are trading higher Friday after the company announced late Thursday it will be acquired by onsemi for $123 per share under the revised agreement.
- Synaptics stock is showing exceptional strength. What’s behind SYNA gains?
The Revised Deal Terms
The amended agreement, announced following an unsolicited competing proposal from a third party, values the transaction at approximately $5.7 billion, down from approximately $7 billion under the prior agreement signed in June. The revised all-cash structure is expected to be immediately accretive to onsemi’s non-GAAP earnings per share and provides value certainty for Synaptics shareholders.
The transaction will be financed through a combination of cash on hand and fully committed debt financing from Morgan Stanley, with the amended agreement no longer including a closing condition tied to onsemi’s financing.
“By transitioning to an all-cash structure, we are providing value certainty at a meaningful premium as compared to current value,” said Rahul Patel, President and CEO of Synaptics. “We are confident this path is the right choice for our shareholders.”
“The all-cash transaction delivers higher value to our shareholders through lower total cost consideration, and we now expect the transaction to be immediately accretive to non-GAAP EPS upon closing,” said Hassane El-Khoury, President and CEO of onsemi. “Synaptics is accretive to our long-term model, with a strong growth outlook and attractive gross margin profile that will help accelerate onsemi’s evolution.”
The transaction has been approved by the U.S. Federal Trade Commission, with regulators in other jurisdictions still reviewing it. The deal is expected to close by mid-2027, subject to approval by Synaptics shareholders and other customary closing conditions.
Synaptics Shares Rush Higher
SYNA Price Action: At the time of publication, Synaptics shares are trading 14.53% higher at $121.57, according to data from Benzinga Pro.
This illustration was generated using artificial intelligence via Midjourney.
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