Renesas to Acquire U.S. Chipmaker IDT for $6.7 Billion
Renesas, the second-biggest supplier of semiconductors used in cars, plans to acquire Integrated Device Technology for about $6.7 billion, according to Bloomberg.
The Japanese company will pay $49 a share, it said in a statement, about a 16 percent premium to the U.S. company’s Monday close and 29 percent higher than the share price when talks were first disclosed. That propelled Renesas’s stock 4.4 percent higher in Tokyo, its biggest jump in almost two months.
Renesas, which gets more than half of its revenue from auto-sector customers, has signaled plans to make acquisitions beyond the industry to expand into fields from health care to aerospace. IDT, based in San Jose, California, gets most of its revenue from products for high-performance computing and consumer applications, including clock-timing, power management and radio-frequency devices.
Renesas can use cash on hand and bank loans to pay for the acquisition and has no plans for an equity fund-raising, CEO Bunsei Kure told reporters in Tokyo. The company plans to get regulatory approval and close the deal by the end of June 2019.