Renesas and Integrated Device Technology, a supplier of analogue mixed-signal products including sensors, connectivity and wireless power, have signed a definitive agreement under which Renesas will acquire IDT for $6.7 billion. The boards of directors of both companies have unanimously approved the transaction, which is expected to close in the first half of 2019, following approvals by IDT shareholders and the relevant regulatory authorities.
Since 2016, Renesas has been working to expand its analogue solution lineup and strengthen its kit solution offerings that combine its microcontrollers (MCUs), system-on-chips (SoCs) and analogue products. These efforts will be underpinned by revenue growth in the automotive segment, which is expected to see tremendous growth with autonomous driving and EV/HEV; the industrial and infrastructure segments, which are predicted to advance with Industry 4.0 and 5G wireless communications; as well as the fast-growing IoT segment.
The acquisition will provide Renesas with access to an array of analogue mixed-signal capabilities in embedded systems, including RF, advanced timing, memory interface and power management, optical interconnect, wireless power and smart sensors. The company says that combining these with its own products will enable it to offer solutions that support the increasing demand of high data processing performance.
The acquisition of IDT’s analogue mixed-signal products for data sensing, storage and interconnect will enable Renesas to extend its reach to fast-growing data economy-related applications — including data centre and communication infrastructure — and to strengthen its presence in the industrial and automotive segments. The company anticipates near- and long-term revenue growth and cost savings from expanded opportunities and access to fast-growing industries, with an expected financial impact of over $250 million.
