onsemi drops bid for Allegro MicroSystems
onsemi says it has withdraws its proposal, and thus terminated its efforts to acquire Allegro MicroSystems for USD 35.10 per share.
onsemi states in a press release that while it still believes that a combination of the companies would have brought two highly complementary businesses together, the company has ultimately determined there is no actionable path forward.
“onsemi is committed to taking a disciplined approach to capital allocation and maximising long-term stockholder value,” said Hassane El-Khoury, president and CEO, onsemi, in the press release. “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.”
onsemi says it will focus on other existing opportunities to enhance stockholder value, and intends to allocate capital towards its existing share repurchase program.
“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,” El-Khoury concludes.
