With other suitors also possible, Onsemi is reportedly exploring a potential acquisition of Allegro Microsystems amid its restructuring plans as Allegro witnesses a change of leadership.
Allegro Microsystems, a provider of sensor integrated circuits, is reportedly attracting takeover interest from ON Semiconductor (Onsemi), according to Bloomberg News.
Onsemi, based in Arizona, US, has been working with advisers in recent months to explore a potential acquisition of Allegro, though the company has not yet indicated whether it is open to a sale.
Furthermore, there is also the possibility of other suitors emerging for Allegro, particularly companies looking to strengthen their automotive capabilities.
Allegro, also based in US, New Hampshire, and valued at $4.11 billion, could be an attractive target for semiconductor firms aiming to expand their presence in the automotive sector. In contrast, Onsemi has a much larger market value of $19.83 billion.
However, according to the report, Onsemi declined to comment on the speculation, while Allegro did not immediately respond to a request for comment from Reuters.
In other developments, Allegro recently appointed Mike Doogue as its new president and CEO, succeeding Vineet Nargolwala. Meanwhile, Onsemi announced a restructuring plan, which will see the company reduce its global workforce by approximately ,400 employees as part of an effort to lower operational costs.
Onsemi also warned of softer demand for its automotive chips, forecasting lower-than-expected revenue for the first quarter of 2025.
