Renesas agrees to buy Intersil for $3.2B
Renesas confirmed it was in talks with Intersil back in August (see Renesas in talks over Intersil acquisition) although at the end of the month it was revealed that Maxim Integrated Products Inc. (San Jose, Calif.) was also interested in grabbing Intersil (see Renesas, Maxim In Duel for Intersil).
Now a deal between Renesas and Intersil has been unanimously approved by the boards of directors of both companies. The deal is expected to close in the first half of 2017, following approval by Intersil shareholders and the relevant governmental authorities.
The deal is described as complementary with Renesas capabilities in microcontrollers and system-chips (SoCs) being married to Intersil’s power management and precision analog capability. It will also enhance Renesas capabilities in industrial and healthcare applications, as well as in automotive where it is already strong. The product synergy together with complementary customer and regional exposure will give Renesas a larger presence globally.
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.