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onsemi announced that it has terminated its efforts to acquire Allegro MicroSystems, Inc. (“Allegro”) and withdrawn its all-cash proposal to acquire Allegro for $35.10 per share.
While onsemi continues to believe that a combination of these companies would have brought two highly complementary businesses together, benefiting their respective customers and delivering immediate value to Allegro shareholders, onsemi has determined there is no actionable path forward.
onsemi will focus on other existing opportunities to enhance stockholder value. In connection with today’s announcement, onsemi intends to continue to allocate capital towards the Company’s existing share repurchase program.
“onsemi is committed to taking a disciplined approach to capital allocation and maximizing long-term stockholder value,” said Hassane El-Khoury, president and CEO, onsemi. “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. We continue to respect both the leadership team at Allegro as well as its talented base of employees.”
El-Khoury continued, “onsemi is well-positioned, both strategically and financially, and we remain sharply focused on executing on our core growth initiatives while pursuing our value-enhancing capital allocation approach. With market-leading technology, a robust innovation pipeline, and a clear strategic roadmap, we continue to see significant long-term opportunities in our core markets of automotive, industrial, and AI data centers.”
Original – onsemi
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onsemi disclosed details of a proposal submitted to the Board of Directors of Allegro MicroSystems, Inc. to acquire the company for $35.10 per share in cash for each share of Allegro’s common stock on a fully diluted basis at an implied enterprise value of $6.9 billion.
onsemi has made numerous attempts over the past six months to enter into constructive discussions regarding a potential transaction. The most recent Proposal was submitted to Allegro on February 12, 2025, and represents an increase over an initial $34.50 per share proposal submitted on September 2, 2024.
“We believe the combination of onsemi and Allegro would bring two highly complementary businesses together, benefitting our respective customers and delivering immediate value to Allegro shareholders,” said Hassane El-Khoury, President and Chief Executive Officer of onsemi. “The Allegro team has built an impressive leadership position in magnetic sensing and power ICs for the automotive and industrial end-markets. Together, Allegro’s unique product portfolio and onsemi’s differentiated intelligent power and sensing technologies would create a diversified leader in automotive, industrial and AI data center applications.”
El-Khoury continued, “While we would have preferred to reach an agreement with Allegro privately, the decision to make our proposal public reflects our conviction in the merits of a combined company, which we believe is in the best interests of Allegro and onsemi shareholders. We urge the Allegro Board and management team to engage in good faith discussions with onsemi’s management team regarding the proposed transaction, which maximizes value for Allegro shareholders.”
The combination between onsemi and Allegro would create a natural strategic fit given both parties’ respective strengths within the automotive and industrial markets:
- Compelling Strategic Rationale That Delivers Benefits for Customers and Employees: Allegro’s product offering complements onsemi’s leadership in intelligent power and sensing for automotive, industrial and AI data center applications. A combination would bring together two strong teams with a shared culture of innovation and access to exciting new development opportunities within an expanded organization.
- Delivering Immediate and Certain Value for Allegro Shareholders: 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 prior to media reports regarding onsemi’s interest in acquiring Allegro.
- Clear Path to Completion and Plan for Financing: onsemi has assembled a team of highly experienced advisors and is prepared to move swiftly and efficiently to complete due diligence and negotiate a mutually agreeable definitive agreement. The company does not anticipate any financing contingencies and intends to fund the potential transaction with a combination of committed financing, cash on hand, and funds available under its existing revolving credit facility.
onsemi first approached Allegro regarding a potential all-cash acquisition on September 2, 2024, via a formal letter with an initial all-cash $34.50 per share proposal. A follow-up letter was sent December 10, 2024, reaffirming onsemi’s desire to transact and gain access to find a pathway to diligence. Subsequently, onsemi made another attempt towards constructive engagement, most recently submitting a letter on February 12, 2025, improving its all-cash proposal to $35.10 per share, while also highlighting its numerous efforts to meaningfully engage with Allegro.
onsemi’s request since September 2, 2024, has been consistent: to advance the possibility of this valuable outcome for shareholders through rigorous management-to-management dialogue and pursuing the requisite diligence and scoping of regulatory requirements in order to expeditiously move towards finalization of a transaction.
Original – onsemi
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Allegro MicroSystems, Inc. announced the launch of the second product in its High Voltage Power portfolio. Allegro’s AHV85111 isolated gate-driver IC adds critical safety features while simplifying the design of high-power energy conversion systems for e-Mobility and clean energy applications, including OBC/DCDC, solar inverter and datacenter power supply.
“Allegro continues to build upon the technology from our acquisitions in order to expand our High Voltage Power portfolio aimed at helping designers achieve their efficiency and power density needs in clean energy and e-Mobility systems,” said Vijay Mangtani, Vice President and General Manager for High Voltage Power at Allegro. “The bipolar-output of our latest device improves noise immunity and significantly simplifies high-frequency power-converter designs.”
Building upon Allegro’s existing power-thru technology, the AHV85111 was designed to meet designer demands for a simple, streamlined and safe solution. The AHV85111 gate driver adds bipolar-output, a critical feature that significantly improves time to market by eliminating the need to design a complicated negative isolated DC power supply and removing unnecessary external components.
Allegro’s newest power-thru solution also adds crucial safety features that were designed to protect against high operating temperatures in electric powertrain systems, as well as reactions to noisy environments that may be present in microinverters in solar applications, power supply in datacenter applications or on-board chargers for electric vehicles.
The AHV85111 gate driver packs all the benefits of Allegro’s power-thru technology, including 10x lower common-mode capacitance, a 50% smaller footprint, 10x noise reduction and a 50% efficiency improvement compared to competitor offerings, while also providing overtemperature protection that further improves the robustness of system.
Original – Allegro MicroSystems
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Transphorm, Inc. and Allegro MicroSystems, Inc. announced a collaboration including Transphorm’s SuperGaN® FETs and Allegro’s AHV85110 Isolated Gate Driver to enable the expansion of GaN power system design for high power applications.
Transphorm’s SuperGaN FETs are designed to work in various topologies and are available in several different packages to support a wide power range while also satisfying diverse end application requirements. SuperGaN FETs are used in multiple commercial products, including higher power systems where they are proven to notably increase reliability, power density, and efficiency.
Allegro’s self-powered, single-channel isolated gate driver IC is optimized for driving GaN FETs in multiple applications and circuits. The AHV85110 is proven to enhance driver efficiency by as much as 50% compared to competitive gate drivers. This unique solution greatly simplifies the system design, reduces noise by 10x and common mode capacitance by 15 times compared to other solutions in the market.
“Allegro’s AHV85110 High Voltage Gate Driver provides a highly compact and efficient power stage implementation that helps to achieve an approximate 30 percent footprint reduction with the least number of external components and bias supply requirements around Transphorm’s power devices,” said Tushar Dhayagude, Vice President of Worldwide Sales and FAE, Transphorm.
“Combined with SuperGaN’s highest reliability and superior dynamic switching performance over competing technologies, the end result is a more efficient, more robust solution with increased power density in critical applications such as server, data centers, renewables and electric vehicles.”
“We are excited about working with Transphorm on a collaboration that further supports Allegro’s focus towards helping customers optimize GaN-based system development and design,” said Vijay Mangtani, Vice President and General Manager of High Voltage Power, Allegro MicroSystems. “We are looking forward to the opportunity to combine our high voltage isolated gate driver AHV85110 with Transphorm’s SuperGaN FET to enable higher power density, higher efficiency, and higher power output in smaller form factors and provide value to both our and Transphorm’s customers.”
Those interested in testing the collaborative solution can do so via Allegro’s APEK85110KNH-06-T evaluation board. The board incorporates both the AHV85110 designed to work in various applications along with Transphorm’s recently announced TOLL packageavailable in three devices with on-resistances of 35, 50, and 72 milliohms.
Original – Transphorm
