Onsemi Revises Offer To Buy Allegro MicroSystems To $35.10/share Cash, In $6.9 Bln Deal

(RTTNews) - ON Semiconductor Corp. or onsemi (ON) announced late Wednesday its revised proposal to acquire Allegro MicroSystems, Inc. (ALGM) to acquire the company for $35.10 per share in cash, at an implied enterprise value of $6.9 billion.

Under the terms of the Proposal, onsemi's all-cash $35.10 per share offer represents a 57% premium to Allegro's closing share price on February 28, 2025, the last trading day prior to media reports regarding onsemi's interest in acquiring Allegro.

The company urged the Allegro Board and management team to engage in good faith discussions with onsemi regarding the proposed transaction.

The latest offer represents an increase over an initial $34.50 per share proposal submitted on September 2, 2024.

The company noted that it has made numerous attempts over the past six months to enter into constructive discussions regarding a potential deal.

Following the potential all-cash acquisition offer on September 2, a follow-up letter was sent December 10, 2024, reaffirming onsemi's desire to transact and gain access to find a pathway to diligence.

The company said its most recent Proposal was submitted to Allegro Board of Directors on February 12.

According to onsemi, a combination with Allegro would create a natural strategic fit given both parties' respective strengths within the automotive and industrial markets.

Hassane El-Khoury, President and Chief Executive Officer of onsemi, said, "We believe the combination of onsemi and Allegro would bring two highly complementary businesses together... 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."

On Nasdaq, Allegro shares gained 7% to close Wednesday's regular trading at $26.78. Meanwhile, in the extended trading, the shares fell 3% to $26.01.