11 Sep 2018

Renesas to acquire Integrated Device Technology

Renesas Electronics, a supplier of advanced semiconductor solutions, and Integrated Device Technology, a providor of analog mixed-signal products including sensors, connectivity and wireless power, have announced they have signed a definitive agreement under which Renesas will acquire IDT for US$49.00 per share in an all-cash transaction representing an equity value of approximately US$6.7 billion (approximately 733.0 billion yen at an exchange rate of 110 yen to the dollar).

The acquisition combines two recognized experts 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 boards of directors of both companies have unanimously approved the transaction. Closing of the transaction is expected to occur in the first half of 2019, following approvals by IDT shareholders and the relevant regulatory authorities.

Since 2016, Renesas has been executing its growth strategy to thrive in the global marketplace and become a global specialist embedded solution provider. As part of this initiative, Renesas is working to expand its analog solution lineup and to strengthen its kit solution offerings that combine its microcontrollers (MCUs), system-on-chips (SoCs) and analog products. These efforts will be underpinned by revenue growth in its focus domains: automotive segment, which is expected to see tremendous growth with autonomous driving and EV/HEV; industrial and infrastructure segments, which are expected to advance with Industry 4.0 and 5G (fifth-generation) wireless communications, as well as the fast-growing IoT segment. Renesas views accretive acquisitions as key enablers in achieving this growth strategy to deliver further incremental growth. The completion of the Intersil Corporation acquisition in February 2017 enabled Renesas to add power management and precision analog capabilities to its product portfolio. Renesas is capitalizing on the opportunities in its focus business segments by offering combined solutions. The transaction announced further accelerates Renesas’ growth strategy, bringing substantial strategic and financial benefits. Complementary products expand Renesas’ solution offerings

The acquisition will provide Renesas with access to a vast array of robust analog mixed-signal capabilities in embedded systems, including RF, advanced timing, memory interface & power management, optical interconnect, wireless power, and smart sensors. The combination of these product lines with Renesas’ advanced MCUs and SoCs and power management ICs enables Renesas 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.

Expands business growth opportunities

IDT’s analog mixed-signal products for data sensing, storage and interconnect are key devices that support the growth of data economy. Acquisition of these products enables Renesas to extend its reach to fast-growing data economy-related applications including data center and communication infrastructure, and to strengthen its presence in the industrial and automotive segments.

Acceleration of global management and operations

The Intersil acquisition brought diverse talent and management capabilities to accelerate Renesas’ global operations. The transaction announced today extends this effort and will provide Renesas with further proficiency to execute global strategy.

Substantial financial benefits

Renesas anticipates near- and long-term revenue growth from expanded opportunities and access to fast-growing industries, and cost savings from a greater scale business platform to bring innovation and improvements with an expected financial impact of approximately over US$250 million (non-GAAP operating income per year on a run rate basis). The transaction is expected to be accretive to Renesas’ non-GAAP gross margin and non-GAAP earnings per share by approximately 1.6%pts and 18% (Note), respectively, immediately after closing.

"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’ 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.”

IDT shares are to be acquired at a price of US$49.00 per share, for a total equity value of approximately US$6.7 billion (approximately ¥733.0 billion at an exchange rate of 110 yen to the dollar). Renesas plans to finance the transaction with cash reserves and approximately 679.0 billion yen of bank loans. Renesas does not intend to raise equity financing for this transaction.

Most popular news in Electronics components

Improved PicoBlade connector system for expanding communications markets
150°C conductive polymer hybrid capacitor portfolio in THT format
Heavy-duty connectors deliver excellent value
Bidirectional buffer provides automatic connection and isolation
XRP customisable recessed socket plates provide custom connectivity

All news in this channel | All news


Share this page


Want more like this? Register for our newsletter






Stray field immunity is essential to magnetic sensing in modern automotive applications Nick Czarnecki | Melexis B. V.
Stray field immunity is essential to magnetic sensing in modern automotive applications
A combination of environmental awareness and consumer demand is driving the automotive industry to produce ever-more efficient vehicles. Whether this is the highly-publicized Electric Vehicles (EV) / Hybrid Electric Vehicles (HEV) or simply updates to the existing internal combustion engine (ICE) based vehicles, modern vehicles are bristling with technology – and this is only set to grow in the future.









Radio-Electronics.com is operated and owned by Adrio Communications Ltd and edited by Ian Poole. All information is © Adrio Communications Ltd and may not be copied except for individual personal use. This includes copying material in whatever form into website pages. While every effort is made to ensure the accuracy of the information on Radio-Electronics.com, no liability is accepted for any consequences of using it. This site uses cookies. By using this site, these terms including the use of cookies are accepted. More explanation can be found in our Privacy Policy