Renesas Electronics Corporation will acquire Integrated Device Technology in an all-cash transaction, an acquisition that combines two leaders in embedded processors and analog mixed-signal semiconductors. The boards of directors of both companies have unanimously approved the transaction. Closing of the transaction is expected to occur in the first half of 2019, following approvals by IDT shareholders and the relevant regulatory authorities.
The transaction further accelerates Renesas’ growth strategy, bringing substantial strategic and financial benefits.
•Complementary products expand Renesas’ solution offerings
•Expands business growth opportunities
•Acceleration of global management and operations
•Substantial financial benefits
Renesas anticipates near- and long-term revenue growth from expanded opportunities and access to fast-growing industries, and cost savings from a greater scale business platform to bring innovation and improvements with an expected financial impact of approximately over US$250 million (non-GAAP operating income per year on a run rate basis). The transaction is expected to be accretive to Renesas’ non-GAAP gross margin and non-GAAP earnings per share by approximately 1.6%pts and 18%, respectively, immediately after closing.