Japan’s Renesas Electronics Corp announced Tuesday it had agreed to buy Integrated Device Technology Inc (IDT) for $6.7 billion. This is the company’s second major acquisition, and is targeted towards accelerating its push into semiconductors for self-driving cars.
IDT is a leading supplier of analog mixed-signal products including sensors, connectivity and wireless power while Renesas is a notable supplier of semiconductor solutions, trailing behind NXP Semiconductors in auto-related chips. The firm commands 30 percent of the global market for microcontrollers used in cars.
The acquisition of IDT 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.
Renesas will pay US$49.00 per share in an all-cash transaction which is expected to close in the first half of 2019.