By Sherry Qin
On Semiconductor has proposed to acquire smaller peer Allegro MicroSystems with an offer that values it at $6.9 billion.
The Scottsdale, Ariz.-based power-and-sensor chip company said it has offered to take over Allegro at $35.10 per share in cash, in a proposal submitted last month, it said in a statement late Wednesday.
On Semiconductor, also known as Onsemi, has made multiple attempts to pursue Manchester, N.H.-based Allegro in recent months. The latest proposed offer is an increase from the $34.50 per share proposal made last September.
Onsemi intends to fund the potential deal with a combination of committed financing, cash on hand and funds available under an existing credit facility, it said.
Onsemi makes about half its revenue from automotive customers. The potential for a bigger downturn in the auto industry is a concern, as car demand has been sliding since 2022.
"The combination between onsemi and Allegro would create a natural strategic fit given both parties' respective strengths within the automotive and industrial markets," Onsemi said.
Allegro last month appointed appointed Mike Doogue as president and chief executive, succeeding Vineet Nargolwala.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
March 05, 2025 23:19 ET (04:19 GMT)
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