IDT is essentially a mixed-signal chip company and together with power management semiconductor company Intersil, which Renesas acquired in February 2017, complements Renesas capabilities in embedded processors and broaden its customer base from automotive to include IoT and big data processing.
Renesas said it intends to funding the deal with cash and loans and would not be issuing any additional share capital. The boards of directors of both companies have unanimously approved the transaction. Closing of the transaction is expected to occur in the 1H19 following approvals by IDT shareholders and the relevant regulatory authorities.
"IDT's products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space," said Renesas CEO Bunsei Kure, in a statement.
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