onsemi Withdraws Proposal to Acquire Allegro MicroSystems
onsemi (NASDAQ: ON) has announced the termination of its efforts to acquire Allegro MicroSystems (NASDAQ: ALGM) and withdrawn its all-cash proposal of $35.10 per share. The decision comes after Allegro's Board of Directors showed reluctance to fully engage with the proposal.
Despite believing in the potential benefits of combining the two complementary businesses, onsemi determined there was no actionable path forward. The company will instead focus on other opportunities to enhance stockholder value and continue allocating capital towards its existing share repurchase program.
CEO Hassane El-Khoury emphasized onsemi's commitment to disciplined capital allocation and highlighted the company's strong position in core markets of automotive, industrial, and AI data centers, supported by market-leading technology and a robust innovation pipeline.
onsemi (NASDAQ: ON) ha annunciato la cessazione delle trattative per l'acquisizione di Allegro MicroSystems (NASDAQ: ALGM) e il ritiro della sua offerta in contanti di 35,10 dollari per azione. La decisione è arrivata dopo che il Consiglio di Amministrazione di Allegro ha mostrato riluttanza a impegnarsi pienamente nella proposta.
Nonostante la convinzione nei potenziali benefici derivanti dalla fusione delle due aziende complementari, onsemi ha ritenuto che non esistesse una strada praticabile per procedere. La società si concentrerà invece su altre opportunità per aumentare il valore per gli azionisti e continuerà a destinare capitale al suo programma di riacquisto azionario esistente.
Il CEO Hassane El-Khoury ha sottolineato l’impegno di onsemi in una gestione disciplinata del capitale e ha evidenziato la solida posizione dell’azienda nei mercati chiave dell’automotive, industriale e dei data center per l’IA, supportata da tecnologie leader di mercato e da un robusto piano di innovazione.
onsemi (NASDAQ: ON) ha anunciado la finalización de sus esfuerzos para adquirir Allegro MicroSystems (NASDAQ: ALGM) y ha retirado su propuesta en efectivo de 35,10 dólares por acción. La decisión se produjo después de que la Junta Directiva de Allegro mostrara reticencia a comprometerse completamente con la propuesta.
A pesar de creer en los beneficios potenciales de combinar ambas empresas complementarias, onsemi determinó que no existía un camino viable para avanzar. En su lugar, la compañía se enfocará en otras oportunidades para aumentar el valor para los accionistas y continuará destinando capital a su programa existente de recompra de acciones.
El CEO Hassane El-Khoury destacó el compromiso de onsemi con una asignación disciplinada del capital y resaltó la sólida posición de la empresa en los mercados clave de automoción, industrial y centros de datos de IA, apoyada por tecnología líder en el mercado y una sólida cartera de innovación.
onsemi (NASDAQ: ON)은 Allegro MicroSystems (NASDAQ: ALGM) 인수 노력을 종료하고 주당 35.10달러 현금 제안을 철회했다고 발표했습니다. 이 결정은 Allegro 이사회가 제안에 전면적으로 참여하는 데 소극적인 태도를 보인 후 내려졌습니다.
두 보완적인 사업의 결합이 가져올 잠재적 이익을 믿었음에도 불구하고, onsemi는 실질적인 진전이 불가능하다고 판단했습니다. 대신 회사는 주주 가치를 높일 다른 기회에 집중하고 기존 자사주 매입 프로그램에 자본을 계속 투입할 계획입니다.
CEO 하산 엘쿠리(Hassane El-Khoury)는 onsemi의 엄격한 자본 배분 의지를 강조하며, 자동차, 산업, AI 데이터 센터 핵심 시장에서 시장 선도 기술과 견고한 혁신 파이프라인을 바탕으로 한 회사의 강력한 입지를 부각시켰습니다.
onsemi (NASDAQ : ON) a annoncé la fin de ses efforts pour acquérir Allegro MicroSystems (NASDAQ : ALGM) et le retrait de sa proposition en numéraire de 35,10 dollars par action. Cette décision intervient après que le conseil d'administration d'Allegro a manifesté une certaine réticence à s'engager pleinement dans cette proposition.
Bien que convaincue des avantages potentiels de la fusion des deux entreprises complémentaires, onsemi a estimé qu’il n’y avait pas de voie concrète à suivre. L’entreprise va plutôt se concentrer sur d’autres opportunités pour accroître la valeur pour les actionnaires et continuer à allouer des capitaux à son programme actuel de rachat d’actions.
Le PDG Hassane El-Khoury a souligné l’engagement d’onsemi envers une allocation disciplinée du capital et a mis en avant la solide position de la société sur les marchés clés de l’automobile, de l’industrie et des centres de données IA, soutenue par une technologie de pointe et une solide dynamique d’innovation.
onsemi (NASDAQ: ON) hat die Einstellung seiner Bemühungen zur Übernahme von Allegro MicroSystems (NASDAQ: ALGM) bekanntgegeben und sein Barangebot von 35,10 US-Dollar pro Aktie zurückgezogen. Die Entscheidung erfolgte, nachdem der Vorstand von Allegro zögerlich war, sich vollständig auf das Angebot einzulassen.
Obwohl man an die potenziellen Vorteile der Zusammenführung der beiden sich ergänzenden Unternehmen glaubte, stellte onsemi fest, dass kein gangbarer Weg nach vorne besteht. Stattdessen wird sich das Unternehmen auf andere Möglichkeiten konzentrieren, um den Aktionärswert zu steigern, und weiterhin Kapital für das bestehende Aktienrückkaufprogramm einsetzen.
CEO Hassane El-Khoury betonte das Bekenntnis von onsemi zu einer disziplinierten Kapitalallokation und hob die starke Position des Unternehmens in den Kernmärkten Automobil, Industrie und KI-Rechenzentren hervor, unterstützt durch marktführende Technologie und eine robuste Innovationspipeline.
- Continued commitment to share repurchase program benefits shareholders
- Strong market position in automotive, industrial, and AI data centers
- Maintains disciplined capital allocation approach
- Failed acquisition attempt of Allegro MicroSystems
- Lost opportunity for business combination and potential synergies
Insights
onsemi's withdrawal of its
The termination reflects a pragmatic approach to M&A, as onsemi cited Allegro's board's reluctance to fully engage despite what onsemi believed would be complementary business synergies. While abandoned acquisition attempts can sometimes signal desperation or strategic missteps, this case appears more calculated.
The immediate pivot to allocating capital toward the existing share repurchase program is particularly noteworthy. This signals management's confidence in onsemi's intrinsic value and suggests they believe the current share price represents an attractive investment opportunity relative to external acquisitions.
From a balance sheet perspective, this decision preserves financial flexibility and avoids potential acquisition premium and integration costs. With onsemi trading at
While some growth opportunity through inorganic expansion is foregone, the reinforcement of disciplined capital allocation and share repurchases typically supports shareholder returns in the near to medium term.
This withdrawn acquisition proposal reveals important strategic dynamics at onsemi worth analyzing beyond the immediate headline.
First, the decision to walk away from Allegro demonstrates strategic discipline rather than acquisition desperation. In technology hardware, failed acquisitions often destroy more value than they create, especially when target companies are reluctant participants.
Second, onsemi's statement that they'll continue focusing on "core growth initiatives" in automotive, industrial and AI data centers indicates a strategic preference for focused organic growth over diversification through acquisition. This approach typically yields better returns when a company has strong positioning in growing markets.
Third, the mention of "no actionable path forward" suggests onsemi conducted proper due diligence on potential hostile takeover scenarios and determined the risks outweighed potential rewards. This rational assessment speaks to management's strategic maturity.
Finally, the reaffirmation of the share repurchase program demonstrates strategic consistency - rather than frantically seeking another acquisition target, onsemi is maintaining its established capital allocation framework.
The fundamental strategic question now becomes whether onsemi can achieve its growth objectives organically or will need to identify more willing acquisition targets in adjacent markets to fulfill its long-term strategic vision.
onsemi intends to continue to allocate capital towards authorized share repurchase
While onsemi continues to believe that a combination of these companies would have brought two highly complementary businesses together, benefiting their respective customers and delivering immediate value to Allegro shareholders, onsemi has determined there is no actionable path forward.
onsemi will focus on other existing opportunities to enhance stockholder value. In connection with today’s announcement, onsemi intends to continue to allocate capital towards the Company’s existing share repurchase program.
“onsemi is committed to taking a disciplined approach to capital allocation and maximizing long-term stockholder value,” said Hassane El-Khoury, president and CEO, onsemi. “While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both companies, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Directors to fully engage and explore our proposal. We continue to respect both the leadership team at Allegro as well as its talented base of employees.”
El-Khoury continued, “onsemi is well-positioned, both strategically and financially, and we remain sharply focused on executing on our core growth initiatives while pursuing our value-enhancing capital allocation approach. With market-leading technology, a robust innovation pipeline, and a clear strategic roadmap, we continue to see significant long-term opportunities in our core markets of automotive, industrial, and AI data centers.”
About onsemi
onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner and smarter world. onsemi is recognized as a Fortune 500® company and included in the Nasdaq-100 Index® and S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders.
Caution Regarding Forward-Looking Statements:
This press release includes “forward-looking statements,” as that term is defined 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, included or incorporated in this press release could be deemed forward-looking statements, particularly statements about onsemi’s current expectations, estimates, and projections about its industry, its business, its capital allocation strategies or any proposed transactions. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” of onsemi’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (filed with the SEC on February 10, 2025), and any subsequently filed Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, and in other documents that onsemi may file from time to time with the SEC. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may differ materially from those expressed or implied by these forward-looking statements. onsemi undertakes no obligation to update or revise any forward-looking statements, except as required by law, and readers are cautioned not to place undue reliance on them, which speak only as of the date of this document. . Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2024 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250414555221/en/
Krystal Heaton
Director, Head of Public Relations
onsemi
(480) 242-6943
Krystal.Heaton@onsemi.com
Parag Agarwal
Vice President - Investor Relations & Corporate Development
onsemi
(602) 244-3437
investor@onsemi.com
Source: onsemi
FAQ
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