Onsemi to buy Synaptics for $5.7B in cash as Nike shares sink 9%

Seeking Alpha·2 Oct 2026·

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M&A · Partnership Earnings Price Action Textiles, Apparel & Luxury Goods

NKE ▼

ON ▲

SYNA ▲

Summary · why it matters

ON Semiconductor agreed to acquire Synaptics for $123 per share in cash, or approximately $5.7B, replacing the all-stock deal announced in June that was valued at about $7B. The revised transaction, which follows an unsolicited competing proposal, is expected to be immediately accretive to Onsemi's non-GAAP EPS and will be funded with cash on hand and committed debt financing from Morgan Stanley, with closing still expected by mid-2027; Synaptics' board unanimously approved the amended agreement. Synaptics shares rose 14% and Onsemi shares gained 6% on the news. ChronoScale Holdings climbed 6% after announcing an expansion with an existing AI infrastructure customer and a separate agreement with a new customer, bringing its contracted business to support a $1B annualized revenue run rate by Q3 2027, though the company cautioned the target depends on timely infrastructure deployment, power and equipment availability, and access to capital. Nike shares plunged 9% after reporting mixed FQ1 results, with revenue declining 4% Y/Y to $11B and a weaker-than-expected FY2027 outlook; Greater China sales plunged 22% Y/Y to $1.2B, Converse revenue fell 28%, Nike Direct declined 8%, and wholesale sales slipped 1%. Nike expects FY2027 revenue to decline by a high-single-digit percentage and adjusted EPS of $1.15-$1.35, excluding about $0.15 in restructuring costs, below the $1.67 consensus, with its PACE initiative targeting approximately $2.5B in savings through FY2031, including $1B in employee-related costs.

Nike Inc ▼

ON Semiconductor Corporation ▲

Synaptics Incorporated ▲