Renesas Electronics to acquire Integrated Device Technology
Renesas Electronics, a supplier of advanced semiconductor solutions, and Integrated Device Technology (IDT), a supplier of analog mixed-signal products, have signed a definitive agreement under which Renesas will acquire IDT for US$49 per share in an all-cash transaction representing an equity value of approximately US$6.7 billion.
The acquisition combines two recognised leaders in embedded processors and analog mixed-signal semiconductors, each with strengths in delivering products to improve performance and efficiency in high-computing electronic systems. The boards of directors of both companies have unanimously approved the transaction.
Since 2016, Renesas has been executing its growth strategy to thrive in the global marketplace and become a global leading embedded solution provider. As part of this initiative, the company is working to expand its analog solution line-up and to strengthen its solution offerings. Renesas views accretive acquisitions as a key enabler in achieving this growth strategy.
Renesas’s acquisition of Intersil Corporation, completed in February 2017, enabled the company to add power management and precision analog capabilities to its product portfolio. The acquisition of IDT further accelerates Renesas’s growth strategy, providing the company with access to a vast array of robust analog mixed-signal capabilities in embedded systems — including RF, advanced timing, memory interface and power management, optical interconnect, wireless power, and smart sensors.
The combination of these product lines with Renesas’s MCUs, SoCs and power management ICs enables the company to offer comprehensive solutions that support the increasing demand of high data processing performance. The enriched solution offerings will bring optimal systems from external sensors through analog front-end to processors and interfaces.
IDT’s analog mixed-signal products for data sensing, storage and interconnect are key devices that support the growth of data economy, enabling Renesas to extend its reach to fast-growing data economy-related applications, including data centre and communication infrastructure, and to strengthen its presence in the industrial and automotive segments. The acquisition is also expected to provide Renesas with talent and management capabilities that will help further execute global strategy, as was the case following the Intersil deal.
“This acquisition will bring us complementary, market-leading analog mixed-signal assets and an incredibly talented group of professionals to help us boost our embedded solution capabilities,” said Bunsei Kure, Representative Director, President and CEO of Renesas. “IDT’s products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space.”
“The combination of Integrated Device Technology’s analog mixed-signal leadership with Renesas’s world-leading microcontroller and automotive/industrial franchise creates a new global powerhouse,” said Gregory L Waters, President and CEO of IDT. “The combined company will possess the key capabilities that customers in the modern data economy demand.”
Closing of the transaction is expected to occur in the first half of 2019, following approvals by IDT shareholders and the relevant regulatory authorities.
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