ON Semiconductor has agreed to acquire Synaptics in an all-stock deal valued at nearly $7 billion to strengthen its focus on physical artificial intelligence technology.
The Arizona-based company said the partnership will increase its total addressable market by $30 billion to $243 billion by 2030 and strengthen its intelligence systems portfolio. This is the company’s largest transaction to date.
On Semi’s stock price fell about 6% after the bell. synapse It rebounded by about 13%.
“This transaction adds instantly connected computing capabilities, expands the reach of our software and ecosystem, and positions ONSemi to deliver greater value as customers increasingly demand intelligent systems,” said Hassan El Khoury, CEO of ON Semiconductor.
Tech companies are in acquisition mode as they rush to expand their AI capabilities.
Qualcomm acquired infrastructure startup Modular this week to boost its software capabilities. Salesforce announced this month that it would acquire AI customer service platform Fin for about $3.6 billion.
The acquisition of ON Semi-Synaptics is expected to close in mid-2027. As part of the acquisition, Synaptics shareholders will receive 1.350 shares of ON Semiconductor common stock for each share they own.
ON Semi also synapse Board member.
On Semiconductor is a leading silicon carbide manufacturer known for its power and sensing solutions for the automotive and electric vehicle industries.
Tune in Friday at 9:45 a.m. ET when ON Semi CEO Hassane El-Khoury appears on CNBC TV to discuss the deal. Watch in real time on CNBC+ or CNBC Pro streams.
