Allegro Receives Unsolicited Proposal From Onsemi, Says Buyout Offer Inadequate

(RTTNews) - Allegro MicroSystems, Inc. (ALGM), a semiconductor technology company, on Thursday confirmed the receipt of an unsolicited buyout offer from ON Semiconductor Corp., also known as Onsemi, for $35.10 per share in cash.

Following the review of the offer with financial and legal advisors, Allegro's Board of Directors determined that the proposal was inadequate and said it does not intend to provide further comments unless deemed necessary.

Onsemi, on March 5, announced its revised proposal to acquire Allegro for $35.10 per share in cash, at an implied enterprise value of $6.9 billion.

Under the terms of the Proposal, onsemi's all-cash $35.10 per share offer represents a 57% premium to Allegro's closing share price on February 28, 2025, the last trading day before media reports regarding Onsemi's interest in acquiring Allegro.

According to Onsemi, a combination with Allegro would create a natural strategic fit given both parties' respective strengths within the automotive and industrial markets.

Wednesday, Allegro's stock had closed at $26.78, 6.95% higher on the Nasdaq. In the after-market hours, the stock traded 2.88% lesser before ending the trade at $26.01.