ON Semiconductor Reportedly Pursuing Allegro Microsystems Acquisition

The potential deal highlights ON Semiconductor's strategic interest in Allegro's automotive sensor expertise as industry demand shifts toward electrification.

• Bloomberg News reports that ON Semiconductor is working with advisers to explore acquiring Allegro Microsystems, a smaller competitor in the automotive sensor market.
• Allegro's market valuation stands at $4.11 billion, while ON Semiconductor is valued at $19.83 billion, according to LSEG data.
• ON Semiconductor's interest in Allegro aligns with its goal to strengthen its position in automotive semiconductors, particularly in vehicle electrification and automation technologies.
• Allegro appointed Mike Doogue as its new president and CEO last Monday, but the company has not indicated whether it is open to a sale.
• ON Semiconductor recently announced a restructuring plan with 2,400 layoffs in 2025, following a revenue forecast below Wall Street expectations due to weaker demand for automotive chips.

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