Renesas Electronics Corporation of Japan has agreed to acquire Integrated Device Technology (IDT, NASDAQ: IDTI) for approximately US$6.7 billion (approximately 733.0 billion yen at an exchange rate of 110 yen to the dollar), combing two recognized leaders in embedded processors and analog mixed-signal semiconductors. IDT shares are to be acquired at a price of US$49.00 per share.
IDT, which is based in San Jose, California, is a leading supplier of analog mixed-signal products, including sensors, connectivity and wireless power. Renesas is the leading global supplier of microcontrollers, and a leader in analog & power and SoC products. The acquisition will provide Renesas with 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.
Renesas said it 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. The company's focus domains include: the 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 wireless communications, as well as the fast-growing IoT segment.
"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.”
Renesas to Acquire Intersil for $3.2 Billion
Renesas supplies microcontroller (MCU) and system-on-chip (SoC) products and technologies. Intersil specializes in power management and precision analog capabilities.
The acquisition is also expected to expand Renesas’ product portfolio, particularly for analog devices, where the market is expected to increase by approximately US$3.9 billion by 2020.
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IDT to acquire GigPeak for $250m for Optical Interconnects
Integrated Device Technology (IDT) of San Jose, California and GigPeak, a supplier of semiconductor ICs and software for high-speed connectivity and video compression over the network and in the cloud, announced that they have signed a definitive agreement for IDT to acquire GigPeak for $3.08 per share, or approximately $250 million, in cash, representing a premium of approximately 22% to GigPeak's closing share price on February 10th.
Under the terms of the merger agreement, IDT will launch a tender offer to acquire all of the issued and outstanding common stock of GigPeak for $3.08 per share. The boards of directors of both companies have unanimously approved the terms of the agreement and the GigPeak board has resolved to recommend that stockholders accept the offer.
The combination of IDT and GigPeak is projected to add approximately $16 million of quarterly revenue at a 70% non-GAAP gross margin and to be accretive to earnings in first full quarter following closing of the transaction.
The acquisition of GigPeak will provide IDT with an optical interconnect product line and technology business that is complementary to its established position as a supplier of real-time interconnect products. More specifically, the combination is expected to extend IDT's leading position as a supplier of communications and cloud data centre products
Under the terms of the merger agreement, IDT will launch a tender offer to acquire all of the issued and outstanding common stock of GigPeak for $3.08 per share. The boards of directors of both companies have unanimously approved the terms of the agreement and the GigPeak board has resolved to recommend that stockholders accept the offer.
The combination of IDT and GigPeak is projected to add approximately $16 million of quarterly revenue at a 70% non-GAAP gross margin and to be accretive to earnings in first full quarter following closing of the transaction.
The acquisition of GigPeak will provide IDT with an optical interconnect product line and technology business that is complementary to its established position as a supplier of real-time interconnect products. More specifically, the combination is expected to extend IDT's leading position as a supplier of communications and cloud data centre products
