ON Semiconductor (ON) has agreed to buy neural network firm Synaptics (SYNA) in a $7 billion U.S. all-stock deal.
In a news release, ON Semiconductor said the acquisition of Synaptics will boost its push into the area of physical artificial intelligence (A.I.).
On Semiconductor added that the deal will give its total addressable market a $30 billion U.S. boost by 2030 and strengthen its intelligence systems portfolio.
Shares of ON Semiconductor fell 14% on news of the deal, while shares of Synaptics rose 13%.
Founded in 1986, Synaptics primarily develops fingerprint scanners and other biometrics technology for use in laptop computers, smartphones, home devices, and vehicles.
On Semiconductor is a major producer of silicon carbide and supplies microchips and processors to the automotive and electric vehicle industries.
Many technology companies are relying on acquisitions to strengthen their A.I. offerings and capabilities.
Technology giants Qualcomm (QCOM) and Salesforce (CRM) each announced acquisitions earlier in June to help boost their A.I. products and services.
ON Semiconductor’s purchase of Synaptics is expected to close in the middle of 2027.
Synaptics’ shareholders will receive 1.35 shares of ON Semiconductor’s common stock for each SYNA share they hold.
Prior to today (June 26), ON stock had risen 109% this year to trade at $118.74 U.S. per share.
