A competitive offer from Cirrus Logic last month prompted Onsemi to revise its terms for acquiring Synaptics, shifting from an all-stock arrangement to a cash-based transaction, Bloomberg reported citing sources with knowledge of the matter.
Court documents filed Thursday identify Cirrus Logic as the unnamed 'Party A' behind the rival proposal, though it remains uncertain whether the company intends to pursue the acquisition further.
From equity to cash
Onsemi's original agreement to acquire Synaptics, announced in June, structured the transaction as a stock-for-stock exchange valued at approximately $7 billion.
Cirrus Logic's counteroffer combined both cash and equity components. In response, Onsemi modified its proposal the following week to $123 per share entirely in cash, reducing the overall deal valuation to roughly $5.7 billion.
Onsemi disclosed at the time that it had responded to an "unsolicited competing proposal" without identifying the rival bidder. The updated filing demonstrates that Synaptics' board engaged substantively with the Cirrus Logic offer before concluding that Onsemi's revised terms better served shareholder interests.
Competing visions for chip markets
Synaptics develops semiconductors for touch interfaces, display technology and connected devices. Onsemi views the acquisition as an entry point into the smart device chip sector.
Cirrus Logic, recognized primarily for manufacturing audio processors used in iPhones, carries a market capitalization near $5.4 billion, marginally exceeding Synaptics' $4.8 billion valuation. The company's stock declined approximately 6 percent on Friday following the news.
Both Cirrus Logic and Onsemi declined to provide statements to Bloomberg. The Onsemi transaction is anticipated to finalize by mid-2027.
Source: The Next Web
