Allegro responds to onsemi’s withdrawal: “proposal was inadequate”
Allegro MicroSystems has broken its silence following onsemi’s decision to withdraw its unsolicited acquisition proposal, calling the offer "inadequate" and further stating that Allegro is uniquely positioned to address the mega-trends of electrification and autonomy.
Allegro says that while it typically refrains from engaging in public discourse over speculative transactions, the board of directors felt compelled to clarify its position amid rising market speculation. In a statement, the board explained that it had taken onsemi’s outreach seriously, undergoing a full review process in consultation with independent financial and legal advisors.
"As it would with any potentially credible outreach, the Board, in consultation with its independent financial and legal advisors, carefully reviewed and considered Onsemi’s proposals and unanimously determined each was inadequate," the statement reads.
According to the company, discussions were ongoing before and after Onsemi made its proposal public. Allegro claims it outlined a “clear and constructive path for engagement,” one that would have allowed onsemi to present an improved offer. However, onsemi ultimately chose not to continue down that path.
The statement follows onsemi’s announcement on April 14 that it had withdrawn its acquisition proposal, citing the "reluctance of Allegro’s Board of Directors to fully engage and explore our proposal."
With the chapter seemingly closed, Allegro is refocusing on its long-term vision, stating that it is “uniquely positioned to address the mega-trends of electrification and autonomy.” The company highlighted its differentiated sensing and power technologies, and reiterated its strategic priorities across sectors such as e-mobility, clean energy, data centres, robotics, and automation.
