ON Semiconductor ($ON) agreed to acquire Synaptics ($SYNA) for $5.7B in cash. The all-cash offer of $123 per share replaces an earlier $7B stock deal. The cash structure prevents share dilution, and ON expects the deal to immediately boost non-GAAP EPS. Onsemi

ON Semiconductor ($ON) agreed to acquire Synaptics ($SYNA) for $5.7B in cash. The all-cash offer of $123 per share replaces an earlier $7B stock deal. The cash structure prevents share dilution, and ON expects the deal to immediately boost non-GAAP EPS. Onsemi will fund the purchase with committed debt and its own $3.86B of cash. Margins: Gross margin: Synaptics = 44.7% Onsemi = lower Operating margin: Onsemi = 23.2% Synaptics = lower Seeking Alpha Quant Ratings: ON Semiconductor = Strong Buy Synaptics = Hold Does the cash structure make this the smarter deal? ▻