According to individuals privy to the private discussions, who requested anonymity, Cirrus Logic last month pitched a cash-and-stock offer aimed at derailing the chipmaker's pending sale to On Semiconductor. Those people said Cirrus is the company labeled "Party A" in an updated Synaptics proxy filed Thursday. They also said it is not clear whether Cirrus still wants to pursue a deal.
Following that outreach, Onsemi last week converted its deal with Synaptics from an all-stock arrangement to an all-cash one, setting the price at $123 per share. Onsemi said it made the change after receiving a competing, unsolicited proposal from another party, without naming who it was, in a statement. The proxy details that Synaptics' board gave Cirrus's bid serious review and held negotiations before concluding the revised Onsemi offer was in shareholders' best interests.
Unsolicited approaches often surface long before a deal does. Market Briefs covers chip sector M&A free every weekday.
Cirrus Logic's press contact in Austin and Onsemi's in Scottsdale, Arizona, both declined to provide any comment. Synaptics, which is located in San Jose, California, did not have a spokesperson respond right away. Onsemi first announced its plan to buy Synaptics in June, pitching the deal as a way to expand in semiconductors for smart devices.
Cirrus Logic shares closed down about 6% at $106.87 for a market value of roughly $5.4 billion. Onsemi slipped about 2% to $77.53, valuing it at $30.2 billion. Synaptics ticked up 0.6% to $119.82, putting its market capitalization at $4.8 billion. If you are tracking where chip consolidation is pushing premiums and cash bids, this trio's price action offers a real-time read on who investors think has leverage and who needs to sweeten terms.
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