Cirrus Logic Launches Unsolicited Bid for Synaptics, Forcing ON Semiconductor's $5.7B Cash Revision

Cirrus Logic submitted an unsolicited cash-and-stock acquisition proposal for Synaptics, disrupting an existing takeover deal with ON Semiconductor. In response to the competing bid, ON Semiconductor revised its agreement from a $7 billion all-stock transaction to a $5.7 billion all-cash deal at $123 per share. The bidding war underscores the rising strategic value of edge AI chipmakers as semiconductor companies compete to expand their local machine learning processing capabilities. Shifting to an all-cash deal provides immediate valuation certainty for Synaptics shareholders while enabling ON Semiconductor to solidify its position in intelligent sensing. Synaptics identified Cirrus Logic as 'Party A' in an updated shareholder proxy filing detailing the rival proposal. The revised $5.7 billion cash consideration reflects an 18.6% reduction from the initial $7 billion stock-based valuation—impacted by ON Semiconductor's falling stock price—but is expected to immediately accrete to ON Semi's Non-GAAP EPS.