TOKYO and MILPITAS, CA -- Renesas Electronics Corporation and Intersil Corporation announce completion of Renesas' acquisition of Intersil Corporation. The transaction brings together the advanced technology and deep end-market expertise of the two companies, and solidifies Renesas' position as a leading global supplier delivering advanced embedded systems to customers.
In connection with the closing of the transaction today, Intersil becomes a wholly-owned subsidiary of Renesas. As a result, Renesas will focus its efforts on achieving a smooth integration of the two companies and intends to continue technical support and future product development for Intersil's industry-leading power management and precision analog solutions.
Renesas also plans to continue operations at Intersil's production facility in Palm Bay, Florida, U.S. and Intersil's home office in Milpitas, California, U.S., as well as the design centers and sales and support organizations serving Intersil customers globally.
As previously announced in September 2016, Renesas anticipates that near- and long-term revenue expansion opportunities combined with the modest anticipated cost efficiencies associated with greater scale will eventually generate synergies of US$170 million (approximately 17 billion yen at an exchange rate of 100 yen to the dollar). The transaction is expected to immediately increase Renesas' gross and operating margins and be accretive to Renesas' non-GAAP earnings per share and free cash flows after closing.