Intelligent power and sensing technology company Onsemi announced on the 7th that it has made an acquisition offer to Allegro MicroSystems.

The all-cash acquisition offer is valued at $35.10 per share of Allegro's common stock on a fully diluted basis, representing an enterprise value of $6.9 billion.

Onsemi has been in discussions with Allegro regarding a potential deal for the past six months. The offer is an increase from the $34.50 per share offer submitted on February 12.

“The combination of ONSemi and Allegro will combine two complementary businesses to benefit customers and deliver immediate value to Allegro shareholders,” said Hassan El Khoury, CEO of ONSemi. “Allegro has built an impressive leadership position in magnetic sensing and power ICs for automotive and industrial end markets.”

Hassan El Khoury, CEO, said, “Through the merger with Allegro, Onsemi will become a diversified leader in automotive, industrial, and AI data centers,” and emphasized that the merger will provide immediate value to Allegro shareholders at a 57% premium to the closing price on February 28.

Onsemi said the merger with Allegro would provide benefits to customers and employees and immediate and clear value to Allegro shareholders. It added that it has a clear path to completion and a financing plan.

Onsemi first made an acquisition offer to Allegro on September 2, 2024 and has been in negotiations since then.