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Renesas to acquire US chipmaker IDT for $6.7B

Advanced chip solutions provider Renesas Electronics Corp. has agreed to acquire U.S. peer Integrated Device Technology Inc. for about $6.7 billion in cash, the two companies said Sept. 11.

Renesas will pay $49.00 per share in cash for all IDT outstanding shares, a premium of about 29.5% over IDT's common stock as of Aug. 30.

Renesas plans to finance the transaction with cash reserves and about ¥679.0 billion of bank loans. It does not intend to issue additional share capital for this transaction, which is expected to close in the first half of 2019.

IDT develops smart sensor, radio frequency, optical and wireless power products. Renesas expects the addition of IDT's memory interconnect and specialized power management products will strengthen its position in the data economy, industrial and automotive sectors.

"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.

Renesas was created in 2010 from a merger of NEC Corp's chip division and Renesas Technology. The latter was established through a merger of the chip units of Hitachi Ltd. and Mitsubishi Electric Corp.

Last year, it bought U.S. chipmaker Intersil Corp. for $3.2 billion.

Renesas shares were up 4.43% as of 9:20 a.m. in Hong Kong.

As of Sept. 10, US$1 was equivalent to ¥111.14.