Renesas announces $3.2bn deal to acquire Intersil

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Renesas Electronics has announced that it is acquiring power management and precision analogue solutions provider, Intersil, in a deal worth $3.2billion. The deal has been universally approved by the boards of directors of both companies and is expected to be completed early in 2017.

The move is the latest in a long line of acquisitions and mergers taking place within the electronics industry and will bring together two companies with expertise across a number of state-of-the-art technologies and end markets.

According to both companies the new entity will be a ‘complete solutions provider of embedded systems’, combining Renesas’ microcontroller (MCU) and system-on-chip (SoC) products and technologies with Intersil’s power management and precision analogue capabilities and will position the company to address opportunities in key areas such as automotive, industrial, cloud computing, healthcare, and the Internet of Things (IoT).

Renesas said that the deal would generate cost savings and boost long terms revenue by over $170million, helped by strong product synergy and complementary customer and regional exposure delivering a much larger global footprint.

The acquisition is expected to grow Renesas’ served product lines, particularly for analogue devices, where the market is expected to increase by approximately US$3.9 billion by 2020.

“Renesas is accelerating its focus of resources in automotive, industrial, infrastructure, and the rapidly growing IoT segments to aggressively grow its global business. Intersil’s extensive portfolio of analogue and power devices as well as its strength in these markets, complement many of Renesas’ initiatives in these areas,” said Bunsei Kure, Representative Director, President and CEO of Renesas Electronics Corporation. “We believe that this combination will bring significant synergies and cross selling opportunities.”

Necip Sayiner, President, CEO and Director of Intersil agreed. “We see great potential in combining the Intersil and Renesas portfolios and gaining the scale that will provide a platform for accelerated growth.”