---
title: "onsemi buys Ferric for $600 million, lines up $2.45 billion for Synaptics and cuts buybacks to $19.9 million"
description: "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."
publisher: "The Inference"
section: "Deals"
published: 2026-11-03T14:11:22.382Z
modified: 2026-11-03T14:11:22.382Z
canonical: https://theinference.org/article/onsemi-buys-ferric-for-600-million-lines-up-2-45-billion-for-synaptics-and-cuts-buybacks-to-19-9-million
language: en
keywords: "Deals, Semiconductors, AI Data Centers, M&A, Debt, Earnings"
---

# 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.

On Monday November 2, [onsemi](https://theinference.org/markets/companies/onsemi) [signed a merger agreement to buy Ferric](https://www.sec.gov/Archives/edgar/data/1097864/000119312526443681/0001193125-26-443681-index.htm), 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](https://theinference.org/markets/companies/synaptics) deal, lenders led by [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley) Senior Funding, with [JPMorgan Chase](https://theinference.org/markets/companies/jpmorgan-chase) added, [committed up to $2.45 billion of senior secured term loans](https://www.bullished.co/onsemi-now-plans-to-pay-cash-for-synaptics-with-up-to-2-450-0-million-in-new-term-loans-79584040/); 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].

*Chart: **onsemi cut share buybacks from $345 million to $20 million in one quarter** Bar chart of onsemi share repurchases in Q3 2025, Q2 2026 and Q3 2026, showing the drop to $19.9 million*

*Common stock repurchases, in millions of US dollars, by quarter, from onsemi's Q3 2026 earnings release cash-flow statement. Source: onsemi Q3 2026 results, November 2, 2026. [3]*

## A rival bid, now on the record

The updated risk factor confirms the amended Synaptics agreement followed an unsolicited proposal from [Cirrus Logic](https://theinference.org/markets/companies/cirrus-logic), the audio-chip maker that [bid for Synaptics in September](https://thenextweb.com/news/cirrus-logic-synaptics-bid-onsemi) [1][7]. 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](https://finance.yahoo.com/markets/stocks/articles/onsemi-reports-third-quarter-2026-211000317.html), 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 [3][4][5]. The stock still [fell roughly 4% after hours](https://finance.yahoo.com/markets/stocks/articles/semiconductor-shares-fall-despite-earnings-214833192.html) [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 [4][6].

*Chart: **onsemi revenue is back to growth after a two-year slide** Column chart of onsemi quarterly revenue from Q1 2024 to Q3 2026, dipping through 2024 and 2025 and recovering to $1.72 billion in Q3 2026*

*Quarterly revenue in billions of US dollars. Q1 2024 through Q2 2026 from onsemi's SEC filings; Q3 2026 from the company's third-quarter 2026 results. [3][8]*

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 [1][2][6].

## Takeaway

onsemi is paying for its AI pivot with debt instead of stock: a $600 million cash deal for Ferric, $2.45 billion of new term loans for Synaptics, and a buyback cut to $19.9 million.

## Sources

1. [Bullished, Onsemi Now Plans To Pay Cash For Synaptics, With Up To $2,450.0 Million In New Term Loans, 3 November 2026](https://www.bullished.co/onsemi-now-plans-to-pay-cash-for-synaptics-with-up-to-2-450-0-million-in-new-term-loans-79584040/)
2. [SEC EDGAR, Form 8-K, ON Semiconductor Corp (Ferric merger agreement and press release), filed 2 November 2026](https://www.sec.gov/Archives/edgar/data/1097864/000119312526443681/0001193125-26-443681-index.htm)
3. [Yahoo Finance / GlobeNewswire, onsemi Reports Third Quarter 2026 Results, 2 November 2026](https://finance.yahoo.com/markets/stocks/articles/onsemi-reports-third-quarter-2026-211000317.html)
4. [Yahoo Finance / GuruFocus, ON Semiconductor Corp Q3 2026 Earnings Call Highlights, 3 November 2026](https://finance.yahoo.com/technology/ai/articles/semiconductor-corp-q3-2026-earnings-070449758.html)
5. [Yahoo Finance / Investing.com, ON Semiconductor shares fall despite earnings beat, 2 November 2026](https://finance.yahoo.com/markets/stocks/articles/semiconductor-shares-fall-despite-earnings-214833192.html)
6. [Bullished, Onsemi CEO Rejects 'De-Emphasizing' Auto Label, Blames Supply Shift To AI As Auto Revenue Slips, 3 November 2026](https://www.bullished.co/onsemi-ceo-rejects-de-emphasizing-auto-label-blames-supply-shift-to-ai-as-auto-revenue-e43caa6d/)
7. [The Next Web, Cirrus Logic made rival bid for Synaptics, Bloomberg reports, 10 October 2026](https://thenextweb.com/news/cirrus-logic-synaptics-bid-onsemi)
8. [onsemi, quarterly figures from its SEC filings, retrieved 3 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001097864)


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onsemi buys Ferric for $600 million, lines up $2.45 billion for Synaptics and cuts buybacks to $19.9 million — The Inference. Canonical: https://theinference.org/article/onsemi-buys-ferric-for-600-million-lines-up-2-45-billion-for-synaptics-and-cuts-buybacks-to-19-9-million