Allegro received an unsolicited $35.10 per share acquisition proposal from onsemi, which the Board found inadequate.
Quiver AI Summary
Allegro Microsystems announced that it received an unsolicited acquisition proposal from onsemi to buy the company for $35.10 per share in cash on February 12, 2025. After reviewing the offer with independent financial and legal advisors, Allegro's Board of Directors deemed the proposal inadequate and has chosen not to provide further comments unless deemed necessary. PJT Partners is acting as Allegro's financial advisor, while Davis Polk & Wardwell LLP is serving as its legal advisor. Allegro emphasizes its commitment to innovation in magnetic sensing and power ICs, aiming to advance sectors like automotive, clean energy, and industrial automation.
Potential Positives
- Allegro confirmed receipt of an unsolicited acquisition proposal, indicating strong interest in the company and its potential value in the market.
- The Board of Directors' determination that the proposal was inadequate reflects confidence in Allegro's future growth and performance prospects.
- The presence of independent financial and legal advisors suggests a thorough and professional evaluation of the acquisition offer, reinforcing Allegro’s commitment to making informed strategic decisions.
Potential Negatives
- The Allegro Board's determination that the acquisition proposal was inadequate may signal a lack of confidence in the company's current valuation and future prospects, which could negatively impact investor sentiment.
- The refusal to engage further with onsemi could be perceived as a missed opportunity for shareholders, especially if the market reacts negatively to Allegro's decision.
- The press release does not provide any information on how Allegro plans to continue enhancing shareholder value or respond to the unsolicited offer, raising concerns about its strategic direction.
FAQ
What is the unsolicited proposal Allegro received?
Allegro received an unsolicited proposal from onsemi to acquire the company for $35.10 per share in cash on February 12, 2025.
Why did Allegro reject the acquisition proposal?
The Allegro Board of Directors determined that the acquisition proposal was inadequate after consulting with financial and legal advisors.
Who is advising Allegro on this matter?
PJT Partners is serving as the financial advisor, and Davis Polk & Wardwell LLP is the legal advisor to Allegro.
Will Allegro comment further on the acquisition proposal?
Allegro does not intend to comment further on this matter unless it finds it necessary to do so.
What is Allegro Microsystems known for?
Allegro Microsystems is known for expertise in magnetic sensing and power ICs, focusing on automotive, clean energy, and industrial automation solutions.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ALGM Congressional Stock Trading
Members of Congress have traded $ALGM stock 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $ALGM stock by members of Congress over the last 6 months:
- REPRESENTATIVE JOSH GOTTHEIMER has traded it 2 times. They made 1 purchase worth up to $15,000 on 10/17 and 1 sale worth up to $15,000 on 09/16.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$ALGM Insider Trading Activity
$ALGM insiders have traded $ALGM stock on the open market 3 times in the past 6 months. Of those trades, 3 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $ALGM stock by insiders over the last 6 months:
- MICHAEL DOOGUE (SVP, CTO) purchased 15,000 shares for an estimated $285,000
- VINEET A NARGOLWALA (President and CEO) has made 2 purchases buying 5,000 shares for an estimated $99,446 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ALGM Hedge Fund Activity
We have seen 116 institutional investors add shares of $ALGM stock to their portfolio, and 199 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- FMR LLC removed 5,479,320 shares (-19.4%) from their portfolio in Q4 2024, for an estimated $119,777,935
- MANUFACTURERS LIFE INSURANCE COMPANY, THE removed 2,050,641 shares (-95.2%) from their portfolio in Q4 2024, for an estimated $44,827,012
- SCHONFELD STRATEGIC ADVISORS LLC added 1,620,888 shares (+inf%) to their portfolio in Q4 2024, for an estimated $35,432,611
- PALOMA PARTNERS MANAGEMENT CO added 1,594,170 shares (+312.8%) to their portfolio in Q4 2024, for an estimated $34,848,556
- AMERIPRISE FINANCIAL INC removed 1,590,003 shares (-81.5%) from their portfolio in Q4 2024, for an estimated $34,757,465
- INVESCO LTD. removed 1,166,514 shares (-35.8%) from their portfolio in Q4 2024, for an estimated $25,499,996
- BLACKROCK, INC. removed 1,085,798 shares (-8.5%) from their portfolio in Q4 2024, for an estimated $23,735,544
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
MANCHESTER, N.H., March 06, 2025 (GLOBE NEWSWIRE) -- Allegro (NASDAQ: ALGM) ("Allegro" or the "Company") today confirmed that it received an unsolicited proposal from onsemi to acquire Allegro for $35.10 per share in cash on February 12, 2025. The Allegro Board of Directors reviewed the proposal, in consultation with its independent financial and legal advisors, and determined that the proposal was inadequate.
Allegro does not intend to comment further on this matter unless it determines it necessary to do so.
PJT Partners is serving as financial advisor to Allegro. Davis Polk & Wardwell LLP is serving as legal advisor to Allegro.
About Allegro Microsystems
Allegro MicroSystems, Inc. is leveraging more than three decades of expertise in magnetic sensing and power ICs to propel automotive, clean energy and industrial automation forward with solutions that enhance efficiency, performance and sustainability. Allegro’s commitment to quality drives transformation across industries, reinforcing our status as a pioneer in "automotive-grade" technology and a partner in our customers' success. For additional information, visit https://www.allegromicro.com/en/.
Allegro Contact:
Jalene Hoover
VP of IR & Corporate Communications
Phone: +1 512 751 6526
[email protected]
Matt Sherman / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
+1 (212) 355-4449
