Synaptics

We were not a defense company five years ago, right? So we understand what high volume, scaling, cost-effective solutions mean.

I personally come from Synaptics, where I ran, uh, the businesses for PCs and phones, and you gotta be able to ramp up, and you gotta be low cost, because a lot of your competition comes out of Asia.

So that was the...

So therefore, we bring that ethos into our company.

Starbucks said it is not buying Chipotle.

On Semiconductor sweetened its deal for Synaptics in response to an unsolicited rival bid from Cirrus Logic.

IonQ is buying cybersecurity firm Elicity for up to $1.3 billion in stock.

Bausch and Lam announced a CEO transition.

With that out of the way, let's talk about on semiconductor.

And first we need to address the not so recent acquisition of Synaptics that was announced, but the more recent update to the terms of that acquisition.

So we have this revised merger agreement We're going to skip the previous agreement and what the terms were, and let's just focus on this one.

The short story was OnSemi was going to be paying a combination of cash and stock.

Market didn't like it.

The stock sold off hard.

And in the midst of all of that, Synaptics received another offer from another undisclosed third party.

So OnSemi has switched this to an all cash deal, $5.7 billion.

That's how On Semi got its groove back earlier this year, but it lost that groove a few weeks later.

Near the end of June, this company announced a deal to acquire a company called Synaptics for $7 billion in stock, and the market hated it.

Synaptics makes chips and software for human machine interfaces.

Think touchscreens, fingerprint sensors, high-quality displays, voice recognition, noise cancellation.

They also made some inroads in AI with a platform that runs real-time machine intelligence on local devices rather than rely on the cloud, and that makes it faster.

They're not in the data center itself, though.

They help power AI within the Internet of Things, which is why Synaptics seems like a winner once we start seeing robots, which we know will be one of the biggest markets in the sector.

On Semi had a pretty compelling argument for the merger.

AppLovin fell four point six percent, another rough day for a stock down roughly fifty percent over the last three months amid concerns about AI threats to e-commerce advertising.

And On Semiconductor climbed six percent as the chip supplier revised its buyout offer of Synaptics for five point seven billion dollars in cash, Barron's said.

Shares of Synaptics rose fourteen percent.

[outro music] The Dow Jones Industrial Average climbed two hundred and fifty.four zero points, or zero point four nine percent Friday, to fifty-one thousand one seventy-six point nine six.

The S&P 500 index rose fifty-six point two seven points, or zero point seven three percent, to seven thousand seven twenty-two point seven two.

We saw a lot of trading, a lot of heavy volume in that one.

Shares gaining up about 6% in today's trade after the chipmaker said it will buy Synaptics for $123 per share, revising their earlier all-stock deal to an all-cash transaction.

So we did see the stock moving up.

Um, Onsemi res- uh, revising the purchase terms to pay about 5.7 billion in cash r- roughly, rather than roughly, that 7 billion in shares.