Allegro MicroSystems (ALGM.US) saw a near 10% increase in its stock price before the market opened, stating that the acquisition offer from AMS was not satisfactory.
1min read allegro microsystems (ALGM.US) confirmed on Thursday that it received an unsolicited acquisition proposal from Onsemi (ON.US) and said the proposal was "inadequate." allegro said it "does not intend to comment further, unless it is determined to be necessary." Onsemi disclosed details of its acquisition proposal to Allegro's board on Wednesday, which would buy the company for $35.10 per share in cash, implying an enterprise value of $6.9 billion. Shares of Allegro were up 9.71% at 29.38 at the time of writing before the market opened.
The company said it had tried to have constructive discussions about a potential transaction multiple times over the past six months. The latest offer was submitted to Allegro on February 12, an increase from the initial offer of $34.50 per share submitted on September 2, 2024.
"We believe that the combination of Onsemi and Allegro will bring together two highly complementary businesses to benefit our respective customers and deliver immediate value to Allegro's shareholders," said Onsemi President and CEO Hassane El-Khoury.