Synaptics Inc. (NASDAQ:SYNA) extended its winning streak to a fourth straight session on Friday, surging 14.08 percent on Friday to finish at $121.10 apiece, following ON Semiconductor’s decision to switch its acquisition of the former to an all-cash transaction.
Week on week, the stock climbed 17.9 percent.
In an update later Thursday, ON Semiconductor said it is now planning to acquire Synaptics Inc. for $123 per share, down from its original offer of 1.350 ON Semi shares for every SYNA stock held by its shareholders.
Photo by Tima Miroshnichenko on Pexels
Although downsized to $5.7 billion from the original $7 billion, SYNA investors gobbled up its stock to take advantage of the nearly 16 percent premium over its closing price on Thursday.
“By transitioning to an all-cash structure, we are providing value certainty at a meaningful premium as compared to current value. We are confident this path is the right choice for our shareholders,” Synaptics Inc. President and CEO Rahul Patel said.
“Our Board has been singularly focused on delivering the best outcome for our shareholders, and today’s amended agreement reflects that commitment,” he noted.
ON Semiconductor is set to finance the transaction through a combination of cash on hand and committed financing from Morgan Stanley.
The transaction is expected to close in the middle of next year, subject to approval of Synaptics Inc. shareholders, while its board of directors will join ON Semiconductor’s board.
Losses Widen 9,400%
The acquisition followed Synaptics Inc.’s soaring losses in both the fourth quarter and full fiscal year 2026.
In the last quarter ending June 27, the company said that net losses widened by 9,419 percent to $447.4 million from only $4.7 million in the same period last year, dragged by a $425.3 million non-cash charge related to the establishment of a valuation allowance against US deferred tax assets, which is excluded from non-GAAP results.
Revenues, on the other hand, increased by 8.9 percent to $308 million from $282.8 million year-on-year.
In full fiscal year 2026, net losses soared by 927 percent to $490.8 million from $47.8 million, while revenues increased by 11 percent to $1.197 billion from $1.074 billion last year.
Hedge Funds Maintain Bullish Stance
Despite the results, institutional investors remained optimistic about the company’s long-term growth prospects, as evidenced by the increase in hedge fund holders establishing exposure, alongside their committed capital.
Insider Monkey data showed that 37 hedge funds held positions in the stock during the period, up from 23 in the first quarter of the year.
More notably, their collective holdings climbed by 77.6 percent to $445.18 million from $250.6 million quarter-on-quarter.
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