Onsemi makes $6.9 billion bid for Allegro Microsystems
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Onsemi on Thursday announced an offer to buy New Hampshire chipmaker Allegro Microsoystems for $6.9 billion in cash, with Allegro responding that the unsolicited bid is "inadequate."
The big picture: Suitors don't normally disclose their desires via press release, which suggests that onsemi's hope is to get an assist from Allegro shareholders. It also may suggest a willingness to go hostile.
By the numbers: Onsemi's $35.10 per share offer for Allegro represents a 31% premium to yesterday's closing price, and is slightly above a $34.50 bid submitted last September.
- Both companies have seen their stock prices fall significantly over the past year, although onsemi has taken the much larger hit.
The bottom line: Onsemi generates around half of its revenue from automakers, which means the current tariff fight gives it added incentive to add new business via acquisition.
