Integrated Device Technology

History

2018: Renesas purchased Integrated Device Technology for $7.2 billion

On September 11, 2018 the Japanese chipmaker Renesas Electronics announced acquisition of Integrated Device Technology. The cost of the transaction is $7.2 billion taking into account debts to the sold company.

Renesas will pay purchase of Integrated Device Technology from own means (without attraction of the credits), proceeding from assessment of $49 for an action. It is 16% more than the cost of securities of Integrated Device Technology for September 10, 2018. The transaction will increase a net debt of the buyer up to 3.2 indicators of EBITDA, but Renesas expects to reduce within two years this indicator up to 1 and to cut down annual expenses more than for $80 million.

Renesas purchased the developer of chips for a car and data centers for $7.2 billion

As a result of merge of Renesas and Integrated Device Technology the company with annual sales in the amount of $7.9 billion will appear. By September 11, 2018 market capitalization of Integrated Device Technology makes $5.4 billion.

If the transaction is approved by shareholders of both companies and the corresponding regulators, the Japanese producer will be able to strengthen considerably the presence in the market of suppliers of integrated microprocessors for cars with the systems of autonomous and semiautonomous driving. By estimates of analysts of IHS Markit for 2017, Renesas is the world's second in sales volume producer of microprocessors for cars with annual revenues of $3.5 billion. Leadership is saved by the Dutch NXP Semiconductors with sales in $4.4 billion at the end of 2017.

According to the Financial Times edition with reference to analysts, in product portfolios of Integrated Device Technology and Renesas of few crossed products, and the transaction should help the Japanese chipmaker to expand opportunities in the markets of data centers and consumer devices.^[1]

The transaction has huge value for us to win on the international scene — the head of Renesas Bunsei Kure said during the press conference.

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