onsemi buys Ferric for $600 million, lines up $2.45 billion for Synaptics and cuts buybacks to $19.9 million
The chipmaker agreed to pay $600 million cash for Ferric and raised its 2030 AI data center target by $500 million, but the 10-Q filed the same evening shows $2.45 billion of new term loans for Synaptics, buybacks cut to $19.9 million, and Cirrus Logic's rival bid written into the risk factors.
Vincent Jiang · 2 min read
On Monday November 2, onsemi+2.62% — onsemi, up 2.62 percent today signed a merger agreement to buy Ferric, a New York-based startup that builds integrated voltage regulators for AI processors, for $600 million in cash plus up to $175 million tied to revenue milestones 2. The deal price is new: Ferric had been rumoured near $1 billion in October, and the signed agreement came in a third cheaper 2. The company raised its 2030 AI data center revenue target by $500 million to more than $3 billion on the back of the acquisition 2.
The real story sits in the 10-Q filed the same evening 1. To fund the revised Synaptics−0.38% — Synaptics, down 0.38 percent as of its last quote deal, lenders led by Morgan Stanley+0.41% — Morgan Stanley, up 0.41 percent as of its last quote Senior Funding, with JPMorgan Chase−0.40% — JPMorgan Chase, down 0.40 percent today added, committed up to $2.45 billion of senior secured term loans; cash on hand covers the rest of the $123.00-per-share price 1. The June agreement was $7 billion in stock 1. The new structure is roughly $5.7 billion in cash, and onsemi says it will be immediately accretive to non-GAAP earnings per share 1. Stock became debt in one amended agreement.
The buyback went quiet
Shareholders were the other payer. onsemi repurchased $19.9 million of stock in the quarter ended October 2, against $344.8 million the prior quarter and $325.0 million a year earlier 3. The prior 10-Q's promise to keep buying back stock is gone from the new filing, along with a risk factor on merger-related repurchase limits 1. On Monday's earnings call, CFO Thad Trent said the top priority after Synaptics closes is paying down debt, with buybacks "opportunistic over time" 4.
onsemi cut share buybacks from $345 million to $20 million in one quarter
Data
| Value | |
|---|---|
| Q3 2025 | $325M |
| Q2 2026 | $344.8M |
| Q3 2026 | $19.9M |
A rival bid, now on the record
The updated risk factor confirms the amended Synaptics agreement followed an unsolicited proposal from Cirrus Logic+0.11% — Cirrus Logic, up 0.11 percent as of its last quote, the audio-chip maker that bid for Synaptics in September 17. Synaptics may owe onsemi a $235 million termination fee if it takes a better offer; onsemi may owe Synaptics $320 million if regulators block the deal 1.
What the tape did
The quarter itself was a beat: revenue of $1.72 billion, up 11% year over year, non-GAAP EPS of $0.90 against an $0.87 estimate, and AI data center revenue of $180 million, up 175% year over year 345. The stock still fell roughly 4% after hours 5. Automotive revenue of $777 million fell 1%, and management guided it down high-single-digits in Q4 as supply moves to AI and industrial customers; CEO Hassane El-Khoury called it supply-driven, not a strategic retreat 46.
onsemi revenue is back to growth after a two-year slide
Data
| Revenue | |
|---|---|
| Q1 '24 | $1.86B |
| Q2 '24 | $1.74B |
| Q3 '24 | $1.76B |
| Q4 '24 | $1.72B |
| Q1 '25 | $1.45B |
| Q2 '25 | $1.47B |
| Q3 '25 | $1.55B |
| Q4 '25 | $1.53B |
| Q1 '26 | $1.51B |
| Q2 '26 | $1.6B |
| Q3 '26 | $1.72B |
What to watch: the Ferric closing expected this quarter, the Synaptics regulatory path carrying that $320 million fee, and whether Q1 automotive shipments return as promised 126.
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