Allegro Issues Statement
Allegro MicroSystems (NASDAQ: ALGM) has issued a statement regarding Onsemi's withdrawal of its unsolicited acquisition proposal. The company's Board of Directors, after careful review with independent financial and legal advisors, unanimously determined that Onsemi's proposals were inadequate.
Despite maintaining communication with Onsemi and providing a clear path for engagement that could lead to greater stockholder value, Onsemi declined to pursue this path. Allegro's Board remains committed to stockholder interests and emphasizes the company's unique position in addressing electrification and autonomy trends through sensing and power technologies.
The company will continue focusing on innovation in e-Mobility, clean energy, data center, robotics and automation markets to enhance its competitive advantages and market-leading positions. PJT Partners and Davis Polk & Wardwell LLP are serving as financial and legal advisors, respectively.
Allegro MicroSystems (NASDAQ: ALGM) ha rilasciato una dichiarazione riguardo al ritiro della proposta di acquisizione non sollecitata da parte di Onsemi. Il Consiglio di Amministrazione, dopo un'attenta valutazione con consulenti finanziari e legali indipendenti, ha unanimemente stabilito che le proposte di Onsemi erano inadeguate.
Nonostante abbia mantenuto comunicazioni con Onsemi e offerto un percorso chiaro per un coinvolgimento che potesse portare a un maggiore valore per gli azionisti, Onsemi ha rifiutato di seguire questa strada. Il Consiglio di Allegro rimane impegnato a tutelare gli interessi degli azionisti e sottolinea la posizione unica dell'azienda nell'affrontare le tendenze dell'elettrificazione e dell'autonomia attraverso tecnologie di rilevamento e potenza.
L'azienda continuerà a concentrarsi sull'innovazione nei mercati di e-Mobility, energie pulite, data center, robotica e automazione per rafforzare i propri vantaggi competitivi e le posizioni di leadership nel mercato. PJT Partners e Davis Polk & Wardwell LLP operano rispettivamente come consulenti finanziari e legali.
Allegro MicroSystems (NASDAQ: ALGM) ha emitido un comunicado respecto a la retirada de la propuesta de adquisición no solicitada por parte de Onsemi. La Junta Directiva, tras una cuidadosa revisión con asesores financieros y legales independientes, determinó por unanimidad que las propuestas de Onsemi eran insuficientes.
A pesar de mantener comunicación con Onsemi y ofrecer un camino claro para un compromiso que pudiera generar mayor valor para los accionistas, Onsemi decidió no seguir esta vía. La Junta de Allegro sigue comprometida con los intereses de los accionistas y destaca la posición única de la compañía para abordar las tendencias de electrificación y autonomía mediante tecnologías de sensores y energía.
La empresa continuará enfocándose en la innovación en los mercados de e-Movilidad, energía limpia, centros de datos, robótica y automatización para fortalecer sus ventajas competitivas y posiciones líderes en el mercado. PJT Partners y Davis Polk & Wardwell LLP actúan como asesores financieros y legales, respectivamente.
Allegro MicroSystems (NASDAQ: ALGM)는 Onsemi의 비공식 인수 제안 철회에 관한 성명을 발표했습니다. 회사의 이사회는 독립적인 재무 및 법률 자문과 함께 신중히 검토한 결과, Onsemi의 제안이 부적절하다고 만장일치로 결정했습니다.
Onsemi와의 소통을 유지하며 주주 가치를 높일 수 있는 명확한 참여 경로를 제시했음에도 불구하고, Onsemi는 이 경로를 따르지 않기로 했습니다. Allegro 이사회는 주주 이익에 전념하고 있으며 센싱 및 전력 기술을 통해 전기화 및 자율주행 트렌드에 대응하는 회사의 독특한 위치를 강조합니다.
회사는 경쟁 우위와 시장 선도적 위치를 강화하기 위해 e-모빌리티, 청정 에너지, 데이터 센터, 로봇공학 및 자동화 분야의 혁신에 계속 집중할 것입니다. PJT Partners와 Davis Polk & Wardwell LLP가 각각 재무 및 법률 자문을 맡고 있습니다.
Allegro MicroSystems (NASDAQ : ALGM) a publié une déclaration concernant le retrait de la proposition d'acquisition non sollicitée d'Onsemi. Le conseil d'administration, après un examen attentif avec des conseillers financiers et juridiques indépendants, a unanimement conclu que les propositions d'Onsemi étaient insuffisantes.
Malgré le maintien des communications avec Onsemi et la proposition d'une voie claire pour un engagement pouvant conduire à une plus grande valeur pour les actionnaires, Onsemi a refusé de suivre cette voie. Le conseil d'administration d'Allegro reste engagé envers les intérêts des actionnaires et souligne la position unique de la société pour répondre aux tendances de l'électrification et de l'autonomie grâce aux technologies de détection et de puissance.
L'entreprise continuera de se concentrer sur l'innovation dans les marchés de la mobilité électrique, de l'énergie propre, des centres de données, de la robotique et de l'automatisation afin de renforcer ses avantages concurrentiels et ses positions de leader sur le marché. PJT Partners et Davis Polk & Wardwell LLP agissent respectivement en tant que conseillers financiers et juridiques.
Allegro MicroSystems (NASDAQ: ALGM) hat eine Stellungnahme zum Rückzug des unerbetenen Übernahmeangebots von Onsemi veröffentlicht. Der Vorstand des Unternehmens hat nach sorgfältiger Prüfung mit unabhängigen Finanz- und Rechtsberatern einstimmig festgestellt, dass die Vorschläge von Onsemi unzureichend waren.
Trotz der Aufrechterhaltung der Kommunikation mit Onsemi und dem Angebot eines klaren Weges für eine Zusammenarbeit, die zu einem höheren Aktionärswert führen könnte, lehnte Onsemi es ab, diesen Weg zu verfolgen. Der Vorstand von Allegro bleibt den Interessen der Aktionäre verpflichtet und betont die einzigartige Position des Unternehmens bei der Bewältigung von Elektrifizierungs- und Autonomietrends durch Sensor- und Energietechnologien.
Das Unternehmen wird weiterhin Innovationen in den Märkten für e-Mobilität, saubere Energie, Rechenzentren, Robotik und Automatisierung vorantreiben, um seine Wettbewerbsvorteile und marktführenden Positionen zu stärken. PJT Partners und Davis Polk & Wardwell LLP fungieren jeweils als Finanz- und Rechtsberater.
- Board demonstrated strong corporate governance by actively engaging with potential acquirer while protecting shareholder interests
- Company maintains strong market position in growing sectors (e-Mobility, clean energy, data center, robotics)
- Failed M&A discussion might impact short-term stock price
- Potential missed opportunity for immediate shareholder value realization through acquisition
Insights
Allegro's statement regarding Onsemi's withdrawn acquisition bid represents a pivotal corporate strategy decision with meaningful market implications. The board's unanimous rejection of multiple proposals as "inadequate" signals strong conviction in Allegro's standalone valuation and future growth trajectory.
The statement strategically positions Allegro as maintaining a constructive posture throughout the process, stating they "repeatedly laid out a clear path" for Onsemi to increase their offer - essentially placing responsibility for the breakdown on the potential acquirer. This narrative management aims to mitigate potential shareholder disappointment over losing an acquisition premium.
What's particularly telling is Allegro's reaffirmation of its strategic focus on high-growth markets including e-Mobility, clean energy, data centers, and robotics. This reinforces their argument that their specialized position in sensing and power technologies for electrification and autonomy deserves premium valuation.
The engagement of blue-chip advisors (PJT Partners and Davis Polk) demonstrates the seriousness with which Allegro approached these discussions, despite the ultimate rejection. This wasn't a reflexive dismissal but rather a calculated assessment of comparative value propositions.
The timing of this statement suggests proactive management of market expectations, getting ahead of potential disappointment by framing the withdrawal as Onsemi's decision rather than a negotiation failure.
This terminated acquisition attempt highlights the current pricing discipline in semiconductor industry consolidation. Allegro's board has taken a strong position that the company's intrinsic value exceeds what Onsemi was willing to pay, a decision that will now be tested by market forces.
The language that Allegro "remained in communication" and provided a "constructive path" for engagement suggests the board was open to a transaction at the right price rather than categorically opposed. This indicates they were likely seeking a significant premium to current valuation, which Onsemi ultimately determined was unjustified.
For investors, this development has mixed implications. The immediate effect is likely negative as any acquisition premium built into the stock price will dissipate. However, long-term implications depend entirely on Allegro's execution against its standalone strategy in the specialized sensing and power technologies markets.
The board's unanimous decision indicates strong internal alignment on valuation expectations. However, this also creates elevated pressure on management to deliver results that justify rejecting the offers. The retention of top-tier financial and legal advisors (PJT Partners and Davis Polk) suggests proper governance and thorough evaluation of fiduciary obligations.
This withdrawal doesn't necessarily close the door on future M&A scenarios. In fact, by publicly highlighting this failed negotiation, Allegro may be signaling to other potential acquirers their price expectations while demonstrating willingness to engage in discussions under the right circumstances.
MANCHESTER, N.H., April 15, 2025 (GLOBE NEWSWIRE) -- Allegro MicroSystems, Inc. (NASDAQ: ALGM) ("Allegro" or the "Company") today issued the following statement regarding Onsemi’s withdrawal of its unsolicited proposal to acquire Allegro:
As a general matter, the Board of Directors of Allegro (“the Board”) believes that public discourse around speculative transactions is not productive nor in the best interests of our stockholders. However, in light of current market speculation about our engagement with Onsemi, we believe it is important to provide stakeholders additional details about the process undertaken by the Board.
As it would with any potentially credible outreach, the Board, in consultation with its independent financial and legal advisors, carefully reviewed and considered Onsemi’s proposals and unanimously determined each was inadequate.
Allegro remained in communication with Onsemi and its advisors (both before and after Onsemi publicly announced its proposal). The Board repeatedly laid out a clear and constructive path for engagement for Onsemi and its advisors that would allow Onsemi the opportunity to offer greater value for our stockholders. Despite continued engagement from the Board and its advisors, Onsemi declined to pursue this path.
The Board has been and remains fully committed to acting in the best interests of its stockholders. We are confident Allegro is uniquely positioned to address the mega-trends of electrification and autonomy with our differentiated sensing and power technologies. Our focus remains on continued innovation to drive forward our competitive advantages while partnering closely with our customers to extend our market leading positions in e-Mobility, clean energy, data center, robotics and automation and unlock additional stockholder value.
PJT Partners is serving as financial advisor to Allegro. Davis Polk & Wardwell LLP is serving as legal advisor to Allegro.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release should be considered forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar words and expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, filed with the U.S. Securities and Exchange Commission on May 23, 2024, which is available at www.sec.gov. These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholder continues to have influence over us; the negative impact any future issuance or sale of our shares may have on the market price of our common stock; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.
You should read this press release with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.
About Allegro Microsystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel automotive, clean energy and industrial automation forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, visit https://www.allegromicro.com/en/.
Allegro Contact:
Jalene Hoover
VP of IR & Corporate Communications
Phone: +1 512 751 6526
jhoover@allegromicro.com
Matthew Sherman / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
+1 (212) 355-4449
FAQ
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