Renesas Electronics and IDT announced today that they have signed a definitive agreement that Renesas Electronics will acquire IDT at a price of US$49.00 per share for a total cash value of approximately US$6.7 billion.

The acquisition is the integration of the two industry leaders of embedded processors and analog mixed-signal semiconductors, both of which can optimize the performance and efficiency of high-performance computing electronic systems through their respective advantages. The transaction has been unanimously approved by both boards. The transaction is expected to be completed in the first half of 2019 after approval by IDT shareholders and relevant regulatory authorities.

Since 2016, Renesas Electronics has been implementing the company's development strategy to promote the company's global market and become the world's leading provider of embedded solutions. As part of the program, Renesas Electronics is working to expand its lineup of analog solutions and to strengthen its solution portfolio, including MCUs, SoCs and analog mixed-signal products. The implementation of the company's development strategy will be based on revenue growth in key areas: the automotive sector, which is expected to have tremendous growth potential for autonomous vehicles and electric vehicles/hybrids; industry and infrastructure, industry 4.0 and 5G Wireless communications, as well as the Internet of Things (IoT), will further evolve. Renesas Electronics believes that expansion of mergers and acquisitions is a key factor in achieving this development strategy and driving further growth.

According to Renesas, the acquisition of Intersil's diverse talent and management capabilities has accelerated the global operation of Renesas Electronics. The transaction announced today will further strengthen Renesas Electronics' ability to implement its globalization strategy and bring great strategic and economic benefits to Renesas.