Semiconductor giant Renesas Electronics Corporation will strengthen its automotive portfolio by acquiring Intersil Corporation, a leading provider of power management and precision analog solutions.
Renesas has signed a definitive agreement to acquire Intersil for $ 22.50 per share in cash and the transaction is expected to be completed in the first half of 2017.
Together, Renesas’ and Intersil’s deep expertise across a number of state-of-the-art technologies will enable the combined company to become a complete solution provider of embedded systems to customers.
By combining Renesas’ popular microcontroller (MCU) and system-on-chip (SoC) products and technologies and Intersil’s leading power management and precision analog capability, Renesas will be well positioned to address rising demands in the areas such as automotive, industrial and the Internet of Things (IoT).
The acquisition is also expected to expand Renesas’ product portfolio, especially for analog devices, where the market is likely to touch $ 3.9 billion by 2020.
Bunsei Kure, Representative Director, President and CEO of Renesas Electronics Corporation, said, “Renesas is accelerating its focus of resources in automotive, industrial, infrastructure, and the rapidly growing IoT segments.
Kure said that extensive portfolio of analog and power devices as well as Intersil’s strength in the automotive, industrial, and broad-based segments complement many of Renesas’ initiatives in these areas.