onsemi proposes 6.9 Billion acquisition of allegro MicroSystem sat 35.10 per share

Strategic Move Aims to Combine Strengths in Automotive, Industrial, and AI Data Center Markets

onsemi (NASDAQ: ON) has formally proposed to acquire Allegro MicroSystems, Inc. (NASDAQ: ALGM) for 35.10 per share in cash,representing a 576.9 billion, was disclosed on March 5, 2025, after months of private attempts to engage Allegro’s board in constructive discussions.

The proposal, increased from an initial $34.50 per share offer made on September 2, 2024, underscores onsemi’s belief in the strategic fit between the two companies. Allegro’s expertise in magnetic sensing and power ICs for automotive and industrial markets complements onsemi’s leadership in intelligent power and sensing technologies. According to Hassane El-Khoury, President and CEO of onsemi, the combined entity would deliver immediate value to Allegro shareholders and create a diversified leader in key growth markets.

Despite repeated efforts to negotiate privately, onsemi decided to make its proposal public to emphasize its commitment to the transaction. The company has secured financing through a combination of cash on hand, committed financing, and its existing credit facility, ensuring a clear path to completion. onsemi has urged Allegro’s board to engage in good-faith discussions to finalize the deal, which it believes benefits both companies’ shareholders, customers, and employees.