Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, and Intersil Corporation, a provider of innovative power management and precision analog solutions, announced Monday that they have signed a definitive agreement for Renesas to acquire Intersil for US $22.50 per share in cash, representing an aggregate equity value of approximately US$3.2 billion.
The transaction has been unanimously approved by the boards of directors of both companies. Closing of the transaction is expected in the first half of 2017, following approval by Intersil shareholders and the relevant governmental authorities, said Renesas.
By combining Renesas’ market-proven microcontroller (MCU) and system-on-chip (SoC) products and technologies and Intersil’s power management and precision analog capability, Renesas will be well positioned to address some of the most exciting opportunities in key areas such as automotive, industrial, cloud computing, healthcare, and the Internet of Things (IoT), the company said.
The acquisition is also expected to grow Renesas’ served product lines, particularly for analog devices, where the market is expected to increase by approximately US$3.9 billion by 2020.
“Renesas is accelerating its focus of resources in automotive, industrial, infrastructure, and the rapidly growing IoT segments to aggressively grow its global business and maintain its position as a leading provider. Intersil’s extensive portfolio of analog and power devices as well as its strength in the automotive, industrial, and broad-based segments complement many of Renesas’ initiatives in these areas,” said Bunsei Kure, Representative Director, President and CEO of Renesas Electronics Corporation.