Onsemi rewrites Synaptics deal as a $5.7 billion cash purchase

Onsemi has replaced its planned all-stock takeover of Synaptics with a cash offer of $123 a share, valuing the chip designer at about $5.7 billion rather than the roughly $7 billion attached to the June agreement. The change followed an unsolicited proposal for Synaptics from another bidder. Under the original structure, Synaptics investors would have received Onsemi shares, so the ultimate value of their payout would have moved with Onsemi’s stock price; cash gives them a fixed amount instead. For Onsemi, the lower cash price avoids issuing new shares while preserving its push beyond power chips and sensors into the computing, connectivity, and interface technology used in connected devices.