Allegro Microsystems, a provider of sensor integrated circuits, is reportedly attracting interest from its larger competitor, ON Semiconductor, according to Bloomberg News on Sunday. ON Semiconductor has been collaborating with advisors to explore the acquisition of Allegro, with the possibility of other potential buyers emerging. Allegro, however, has not disclosed its stance on a potential sale.
Bloomberg suggests that semiconductor companies seeking to strengthen their presence in the automotive sector may consider acquiring Allegro.
Both companies refrained from confirming the news. Allegro, with a market valuation of $4.11 billion, and ON Semiconductor, valued at $19.83 billion, have not officially commented on the matter.
Allegro, headquartered in Manchester, New Hampshire, recently named Mike Doogue as its new President and CEO, in place of Vineet Nargolwala.
On Semiconductor, based in Phoenix, Arizona, announced a restructuring plan aimed at reducing operational costs, which will involve laying off approximately 2,400 employees by 2025 across all its business divisions globally.
In February, On Semiconductor projected first-quarter revenue below Wall Street expectations, attributing it to a decrease in demand for its automotive chips.