Bank of America analysts raised their earnings estimates for ON Semiconductor after the two companies restructured their deal, saying the revised terms now add to ON's bottom line.

The reworked agreement shifts more of the economics toward ON Semiconductor. Under the new structure, Synaptics will take over a fab and related assets, and ON will move some of its production to foundry partners. BofA's team, led by analyst Vivek Arya, wrote in a note that the changes should be accretive to ON's earnings.

The analysts now expect the deal to add to ON's earnings per share starting in 2026, earlier than they had previously modeled. They raised their price target on ON shares to $72 from $68.

The revised deal also reduces ON's capital spending requirements, according to the note, since Synaptics will absorb some of the manufacturing footprint. ON has been working to lower its capex as it shifts its mix toward silicon carbide and away from lower-margin commodity products.

BofA kept its Buy rating on ON shares. The stock closed at $61.85 on Friday.

The original agreement, announced in June, would have had ON pay Synaptics $255 million in cash and contribute a fab in South Portland, Maine. The reworked version, disclosed in a regulatory filing this week, still includes the Maine fab but changes the cash component and adds the foundry arrangement.

Synaptics said it expects the deal to close in the first half of 2026. The company makes chips for touchpads, fingerprint sensors and other interface products.