ON Semiconductor Stock Jumps After Withdrawing Proposal To Acquire Allegro MicroSystems

ON Semiconductor Corp ON shares are rising in extended trading Monday after the company withdrew its acquisition proposal for Allegro MicroSystems ALGM.

What Happened: After the market close on Monday, ON Semiconductor announced it ceased efforts to acquire Allegro MicroSystems and withdrew its all-cash proposal of $35.10 per share after determining there was “no actionable path forward.”

On Semi shares popped on the news, while Allegro MicroSystems shares traded lower by approximately 10%.

ON Semiconductor said it will focus on other existing opportunities to enhance shareholder value. In connection with the announcement, the company said it intends to continue to allocate capital towards its existing buyback program.

“On Semi is committed to taking a disciplined approach to capital allocation and maximizing long-term stockholder value,” said Hassane El-Khoury, president and CEO of ON Semiconductor.

“While we continue to believe that a combination with onsemi would be beneficial to all stakeholders of both companies, after careful consideration, we have decided to withdraw our acquisition proposal given the reluctance of Allegro’s board of directors to fully engage and explore our proposal.”

ON Semiconductor said the company continues to see significant long-term opportunities in the automotive, industrial and AI data center markets.

ON Price Action: At publication time, ON Semiconductor shares were up 2.47%, trading at $36.50 in Monday’s after-hours session, according to Benzinga Pro.

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