After months of outreach and an increased bid, onsemi is urging Allegro’s Board to engage in discussions, highlighting the strategic benefits of combining their automotive, industrial, and AI-driven technologies.
Onsemi has announced a proposal to acquire Allegro MicroSystems, Inc. for $35.10 per share in cash, valuing the company at an enterprise worth of $6.9 billion. The offer represents a 57% premium over Allegro’s closing share price on February 28, 2025.
The company has sought to engage Allegro in discussions over the past six months, increasing its offer from an initial $34.50 per share proposed on September 2, 2024. The latest proposal, submitted on February 12, 2025, underscores onsemi’s commitment to pursuing this strategic acquisition.
While onsemi initially sought a private agreement, the decision to make the proposal public underscores its confidence in the transaction’s benefits. El-Khoury urged Allegro’s Board to engage in discussions to maximize shareholder value.
Strategic Rationale for the Acquisition
- Stronger Market Position: Allegro’s product portfolio complements onsemi’s leadership in intelligent power and sensing, enhancing their collective footprint in automotive, industrial, and AI-driven applications.
- Immediate Shareholder Value: The $35.10 per share all-cash offer provides Allegro shareholders with a significant and immediate 57% premium.
- Clear Execution Plan: onsemi is prepared to finance the deal through a combination of committed financing, cash on hand, and existing credit facilities.
The company first proposed an all-cash acquisition at $34.50 per share on September 2, 2024. Despite multiple follow-ups, including a revised $35.10 offer on February 12, 2025, Allegro has not yet engaged in substantive discussions. onsemi remains committed to pursuing this transaction and advancing shareholder value through further dialogue and due diligence.
“We see a compelling opportunity in combining onsemi and Allegro, leveraging our complementary strengths to drive innovation in the automotive, industrial, and AI data center markets,” said Hassane El-Khoury, onsemi’s President and CEO. “Allegro’s expertise in magnetic sensing and power ICs, combined with our intelligent power and sensing technologies, would establish a diversified industry leader.”
