Renesas Buys U.S. Chipmaker IDT in $6.7 Billion Deal
Japan’s Renesas Electronics Corp. has agreed to buy California-based Integrated Device Technology Inc. for $6.7 billion.
#electronics
Japan’s Renesas Electronics Corp. has agreed to buy California-based Integrated Device Technology Inc. for $6.7 billion.
Renesas confirmed its interest in IDT late last month. The company will pay $49 per share, representing a premium of about 16%. The deal is expected to close by the end of June, pending regulatory clearances.
CEO Masahiro Wakasugi tells reporters that Renesas will pay for the deal with cash and bank loans. It does not plan to go to the equity markets.
Renesas derives more than half its revenue selling computer chips for automotive use and is second in that market only to NXP Semiconductors NV. The company estimates that absorbing IDT will lower costs by $80 million in two years.
San Jose-based IDT specializes in high-performance computing chips for such applications as data storage and wireless networks. Both capabilities are essential for autonomous vehicles. The company reported revenue of $843 million and net income of $124 million for the fiscal year ended March 31.
IDT’s revenue comes primarily from chips for computing (40%), communications (29%) and consumer products (20%).
RELATED CONTENT
-
Lincoln Corsair Takes Flight
“We wanted to create a dramatic, youthful Lincoln with terrific harmony.” And with the Corsair, they’ve accomplished what they set out to do.
-
Mercedes-Benz Sprinter 2500 Passenger Van
It is hard to describe how large—more precisely, long and spacious—the Sprinter Passenger Van is in a meaningful way.
-
Ford GT Display Development
As you are unlikely to ever be in one of these: (and I’m not implying my odds for getting there are much better), you’re unlikely to ever see this, the 10-inch wide all-digital display in the Ford GT: Speaking to the development of TFT LCD display, Jamal Hameedi, chief engineer, Ford Performance, said, “Driver focus and attention are key with such high performance.