Renesas is set to acquire Integrated Device Technology. The companies have signed a definitive agreement for it. Renesas is one of the premier suppliers of advanced semiconductor solutions, and IDT supplies analog mixed-signal products including sensors, connectivity and wireless power.
The acquisition combines two recognized leaders in embedded processors and analog mixed-signal semiconductors, each with unique strengths in delivering products to improve performance and efficiency in high-computing electronic systems.
The details related to the acquisition are mentioned below:
- The acquisition will take place for US$49.00 per share in an all-cash transaction representing an equity value of approximately US$6.7 billion
- Acquisition of analog mixed-signal company adds complementary product lines, supporting Renesas’ growth strategy
- IDT’s analog mixed-signal products including sensors, high performance interconnect, RF & optical and wireless power join Renesas’ MCUs, SoCs and power management ICs to deliver comprehensive solutions addressing the increasing demand from IoT to big data processing
- IDT’s products for memory interconnect and specialized power management enable Renesas to create growth in expanding data economy fields and to further strengthen its presence in the industrial and automotive segments
- US$49.00 per share in cash to be paid for all IDT outstanding shares, representing a premium of approximately 29.5 percent over the unaffected price of IDT’s common stock as of August 30, 2018
- The transaction is expected to be highly accretive to Renesas’ pro-forma non-GAAP gross margin, non-GAAP EPS (earnings per share) and free cash flows immediately after closing
- Renesas plans to finance the transaction with cash reserves and approximately 679.0 billion yen of bank loans. There will be no issuance of additional share capital for this transaction.