In the latest combination in a consolidating semiconductor industry, Renesas Electronics will acquire Integrated Device Technology (IDT) for $49 per share in an all-cash deal, representing approximately $6.7 billion in equity value. The share price is approximately 16 percent above IDT’s closing price on Monday, September 10.
Acquiring IDT will expand Renesas’ advanced microcontroller (MCU), system on chip (SoC) and power management ICs, supporting Renesas’ strategy to become a leading embedded solutions provider. IDT will add analog mixed-signal capabilities in RF, advanced timing, memory interface, power management, optical interconnect, smart sensors — and a leading market position in wireless power. Renesas seeks to offer comprehensive semiconductor solutions, including sensors, analog front-ends, processors and interfaces.
Renesas has targeted the automotive (autonomous driving and electric vehicles), industrial and infrastructure (5G and industrial IoT) markets.
Greg Waters, IDT president and CEO, said, “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. The combined company will possess the key capabilities that customers in the modern data economy demand.”
The acquisition, unanimously approved by the boards of both companies, is planned to close during the first half of 2019, assuming approvals by IDT shareholders and regulators.
Renesas plans to finance the transaction with cash reserves and approximately 679.0 billion yen of bank loans, rather than equity financing. The $6.7 billion equity value is approximately 733 billion yen, assuming an exchange rate of 11 yen to the dollar.