Power and discrete semiconductor leader onsemi has publicly announced in a release its intent to acquire semiconductor based sensor expert Allegro Microsystems for an approximate value of $6.9 billion buying Allegro shares at $35.10 per share in cash. onsemi initiated acquisition proposal by approached Allegro regarding a potential all-cash acquisition on September 2, 2024, via a formal letter with an initial all-cash $34.50 per share proposal, than it increase the offer to $35.10 per share on 12th Feb 2025. In its release onsemi explained strategic rational, benefit to Allegro shareholders and also its financial readiness to complete the acquisition swiftly.
onsemi see Allegro' product portfolio to complement onsemi offerings. Hassane El-Khoury, President and Chief Executive Officer of onsemi quoted "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. 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 center applications."
However Allegro is not accepting the offer by releasing a press note confirming that it received an unsolicited proposal from onsemi to acquire Allegro for $35.10 per share in cash on February 12, 2025, where its Board of Directors reviewed the proposal, in consultation with its independent financial and legal advisors, and determined that the proposal was inadequate.
