Onsemi Discloses Allegro Takeover Bid at $6.9 Billion Value

Liana Baker, Gillian Tan and Ryan Gould

Thu, Mar 6, 2025, 2:04 AM 2 min read

(Bloomberg) -- ON Semiconductor Corp. made its pursuit of Allegro Microsystems Inc. nationalist connected Wednesday, disclosing an unsolicited bid valuing the institution astatine $6.9 cardinal including debt.

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The spot company, which does concern arsenic Onsemi, is offering $35.10 per stock for Allegro, up from a September connection of $34.50, it said successful a statement. Allegro responded hours aboriginal to accidental it had reviewed the bid but recovered it “inadequate.”

Onsemi has been moving with advisers successful caller months to prosecute Allegro, Bloomberg News antecedently reported. Making takeover offers nationalist is not a communal determination but it’s an M&A maneuver designed to enactment shareholder unit connected a imaginable target. It’s been done earlier successful the semiconductor industry. In 2017, Broadcom Inc. made a $103 cardinal unsolicited takeover bid for Qualcomm Inc., which was fended disconnected with assistance from the White House.

Manchester, New Hampshire-based Allegro had a marketplace capitalization of astir $4.9 cardinal astatine the adjacent Wednesday successful New York, portion Onsemi was valued astatine $19.6 billion. Shares successful Allegro roseate arsenic overmuch arsenic 13% successful premarket US trading connected Thursday, portion Onsemi fell arsenic overmuch arsenic 3.6%.

Allegro develops precocious semiconductors, describing itself arsenic a person successful powerfulness and sensing solutions for question power and energy-efficient systems. The products are utilized successful car engines and information systems arsenic good arsenic information centers and factories. Onsemi besides develops powerfulness and sensing technologies utilized successful the automotive, concern and unreality computing sectors. Since quality of Onsemi’s pursuit broke, probe analysts person written that a woody makes strategical sense.

Allegro’s biggest shareholder is Japan’s Sanken Electric Co., with a involvement of astir 32%, according to information compiled by Bloomberg.

--With assistance from Subrat Patnaik.

(Updates with pre-market stock determination successful 4th paragraph.)

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