Acquisitions · Semiconductors
Renesas buys chipmaker IDT for $6.7 billion
- Buyer
- Renesas Electronics (Tokyo)
- Target
- Integrated Device Technology (IDT), San Jose, California
- Value
- $6.7B (¥733B)
- Status
- Agreed on September 11, 2018; completed on March 29, 2019.
- Date
- 2018-09-11
Renesas Electronics agreed to buy Integrated Device Technology, a San Jose, California maker of analog mixed-signal chips, for $49 a share in cash, valuing its equity at about $6.7 billion (¥733 billion). It was the largest acquisition ever by a Japanese chipmaker.
Why it matters
IDT's chips for data centers and communications complemented Renesas's microcontrollers for cars and factories, broadening its products beyond those markets.
Price and financing
The $49 share price was about 29.5% above IDT's unaffected price on August 30, 2018. Renesas planned to pay with cash on hand and about ¥679 billion of bank loans, without issuing new shares. Both boards approved the deal unanimously.
Product fit
Renesas planned to pair IDT's analog mixed-signal products with its own microcontrollers, system-on-chips and power management chips, focusing on data economy, industrial and automotive uses. It expected more than $250 million a year in operating income benefits on a run-rate basis.
Sources
Kakehashi M&A News home
