onsemi has officially withdrawn its acquisition proposal for Allegro MicroSystems, ending its pursuit of a $35.10-per-share all-cash deal. The Scottsdale-based semiconductor company said it no longer sees a viable path forward after Allegro’s board showed reluctance to fully engage in discussions. The proposed transaction would have combined two complementary businesses with strengths in power and sensing technologies for automotive and industrial markets.
Instead of pursuing the acquisition, onsemi plans to continue allocating capital to its authorized share repurchase program. The company reaffirmed its commitment to disciplined capital deployment and will refocus on its strategic roadmap, which includes expanding its presence in automotive, industrial automation, and AI data center markets. onsemi highlighted its robust innovation pipeline and financial positioning as key factors driving its decision.
While onsemi still believes a combination would have benefited both companies, it emphasized the importance of maintaining flexibility in capital allocation. The withdrawal signals a shift back to organic growth and shareholder returns after the failed deal attempt.
- onsemi withdraws $35.10/share cash proposal to acquire Allegro MicroSystems
- Decision driven by Allegro’s lack of engagement; deal no longer seen as actionable
- onsemi to redirect capital toward existing share repurchase program
- Focus returns to core markets: automotive, industrial, and AI data centers
- Strategic roadmap and innovation pipeline cited as growth drivers
- No current plans for renewed acquisition efforts
“While we continue to believe that a combination with onsemi would be beneficial to all stakeholders… after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s Board of Directors to fully engage,” said Hassane El-Khoury, president and CEO of onsemi.