Renesas buys Intersil in cash deal
13-09-2016 | By Paul Whytock
Embedded design specialists Renesas Electronics is to buy power management and analog solutions company Intersil for US$22.50 per share in cash. This represents an aggregate equity value of approximately US$3.2 billion and the board of directors of both companies have unanimously approved the deal.
The transaction is expected to close in the first half of 2017 following approval by Intersil shareholders and the relevant governmental authorities.
By combining Renesas’ microcontroller and system-on-chip products and technologies and Intersil’s power and analog expertise Renesas believes it will be well positioned to exploit opportunities in areas such as automotive, industrial, cloud computing, healthcare and the Internet of Things.
The acquisition is also expected to grow Renesas’ served product lines, particularly for analog devices, where the market is predicted to increase by approximately US$3.9 billion by 2020.
The transaction is expected to immediately increase both gross and operating margins and be accretive to Renesas’ non-GAAP earnings per share and free cash flows after closing.
