Renesas Electronics Corporation announced on Tuesday that it will acquire Integrated Device Technology, Inc. (NASDAQ: IDTI) for USD 6.7 Billion. IDT’s shares were trading 11.3% higher at the opening bell.
Renesas’, a Tokyo-based semiconductor manufacturer, acquisition will combine the two companies’ embedded processors and analog mixed-signal semiconductors in order to improve performance and efficiency in electronic systems.
The acquisition will provide Renesas with access to a variety of analog mixed-signal capabilities to improve its product lineup, bolstering its business segments. The combination will allow the Company to meet the demand of high data processing performance products.
Renesas is predominantly based in Japan but, with its acquisition of IDT, it allows the Company to expand itself globally overseas.
Currently, Renesas is working on its analog solution lineup and strengthening its kit solution offerings that combine its microcontrollers, system-on-chips and analog products. Renesas is heavily focused on the automotive segment, which is forecasted to see significant growth due to the boom in autonomous vehicles and electric and hybrid vehicles.
Other segments also include its industrial and infrastructure components, which will be driven by the technological advancements in the upcoming 5G technology and Internet of Things segment.
“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 Chief Executive Officer of Renesas. “IDT’s products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space.”
In combination with its previous acquisition of Intersil last year, Renesas forecasts that acquiring IDT will help the Company achieve its growth strategy, delivering strategic and financial benefits.