Onsemi Eyes ~$1B Deal for Chip Startup Ferric
ON sits 74% above its 52-week low of $44.56.
Summary
Onsemi is reportedly in talks to buy chip startup Ferric for roughly $1B, per a Seeking Alpha report citing unnamed sources. The target is a small private chip startup, so the price is modest next to onsemi's size but still a real check to write. This lands just weeks after onsemi renegotiated its Synaptics acquisition down to $5.7B in cash ($123/share) from about $7B, and after it lined up fully committed debt financing from Morgan Stanley for that deal. Adding another acquisition on top of a $5.7B cash purchase raises the question of how onsemi funds it and whether management is stretching its balance sheet. No terms, structure, or timing are disclosed, and talks may not lead to a deal.
At the time of this announcement, ON was trading at $77.73 on NASDAQ in the Technology sector, with a market capitalization of approximately $30.6B. The 52-week trading range was $44.56 to $134.92. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.