Allegro Rejects Onsemi's $6.9 Billion Takeover Bid, Citing Offer as 'Inadequate'
The proposed acquisition would have combined two key players in the automotive and industrial semiconductor markets, but Allegro deemed the offer undervalued.
- Onsemi publicly disclosed its $35.10 per share offer for Allegro MicroSystems, valuing the company at $6.9 billion, including debt.
- Allegro rejected the bid, calling it 'inadequate' after a review, following a prior $34.50 per share offer in September 2024.
- Shares of Allegro surged nearly 8% after the rejection, while Onsemi's stock fell by 5% on Thursday amid investor reactions.
- Onsemi's CEO highlighted the potential for a merger to create a diversified leader in automotive, industrial, and AI data center applications.
- The semiconductor industry continues to face challenges, including weak demand and excess inventory, impacting both companies' recent financial performance.
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