ON Semiconductor Corp. publicly announced on Wednesday that it will acquire Allegro Microsystems Inc., after the company disclosed an unsolicited $6.9 billion acquisition offer that includes debt.

This chip company (business name Onsemi) stated in a statement that its acquisition offer for the target company is $35.10 per share, higher than the $34.50 per share proposed in September. Allegro responded several hours later, stating that they had reviewed the quotation but deemed it "inappropriate".

According to Bloomberg's previous report, Onsemi has been working with consultants in recent months to acquire Allegro. Public tender offers are not common, but they are a merger and acquisition strategy aimed at exerting shareholder pressure on potential target companies. This situation has also occurred in the semiconductor industry before. In 2017, Broadcom Inc. made an unsolicited $103 billion acquisition offer to Qualcomm Inc., but it was blocked with the help of the White House.

On the New York Stock Exchange on Wednesday, Allegro shares closed up 7%. The market value of the company, headquartered in Manchester, New Hampshire, reached about $4.9 billion. Onsemi's stock price rose 4.5% to $46.49, with a market value of $19.6 billion.

Allegro develops advanced semiconductors and claims to be a leader in motion control and energy-saving system power and sensing solutions. Its products are used for automotive engines and safety systems, as well as data centers and factories. Onsemi also develops power and sensing technologies for the automotive, industrial, and cloud computing fields. Since the news of Onsemi's acquisition came out, research analysts have written articles stating that this deal has strategic significance.

According to data compiled by Bloomberg, Allegro's largest shareholder is Japan's Sanken Electric Company, holding approximately 32% of the shares.