Onsemi (NASDAQ: ON) and Synaptics (NASDAQ: SYNA) announced an amended merger agreement on October 1, 2026, reducing the acquisition price to $123 per share in cash, for a total value of approximately $5.7 billion, down from roughly $7 billion under the original June 25, 2026 agreement.

The revision follows an unsolicited competing proposal received from a third party. Under the amended terms, onsemi will finance the all-cash transaction through a combination of cash on hand and committed debt financing from Morgan Stanley. The amended agreement does not include a closing condition tied to financing.

Onsemi said the transaction is expected to be immediately accretive to its non-GAAP earnings per share upon closing, compared to the prior agreement. The company also stated it has identified additional value opportunities beyond the previously announced $200 million in annual run-rate synergies, including revenue synergies and insourcing of a portion of Synaptics' production, expected to be realized more than 18 months after closing.

"The all-cash transaction delivers higher value to our shareholders through lower total cost consideration, and we now expect the transaction to be immediately accretive to non-GAAP EPS upon closing," said Hassane El-Khoury, President and CEO of onsemi.

The Synaptics board unanimously determined the amended transaction remains in the best interests of its shareholders. "By transitioning to an all-cash structure, we are providing value certainty at a meaningful premium as compared to current value," said Rahul Patel, Synaptics President and CEO.

The transaction has received approval from the U.S. Federal Trade Commission, with regulatory reviews ongoing in other jurisdictions. Closing remains subject to Synaptics shareholder approval and other customary conditions, and is still expected by mid-2027.