Japanese chip maker Renesas Electronics has agreed to buy Apple’s supplier Dialog Semiconductor for € 4.9 billion ($ 5.9 billion) in cash.
Renesas, one of the world’s largest auto chip makers, has provided Dialog with € 67.50 per share. This corresponds to a 20% premium on Friday’s closing price and a 52% premium on a weighted 3-month average. Dialog is listed in Frankfurt and is headquartered in the United Kingdom.
“The deal announced today represents the next important step in driving Renesas’ growth plans,” said Hidetoshi Shibata, president and CEO of Renesas, in a series of recent acquisitions. It describes the latest information.
Dialog, which specializes in power management chips and low-energy Bluetooth products used in fitness trackers and cordless earphones, said the agreed deal is an “attractive opportunity” for shareholders. The board said it unanimously recommended the proposal.
Dialog shares traded in Frankfurt at € 65.30, up 16% and were shy at the agreed selling price. The British-German ship’s chip designer confirmed on Sunday that it had received an offer from Renesas in response to news reports that it was the target of the acquisition.
The deal comes after Renesas and Dialog agreed to work together on an automotive computing platform in August, but a global shortage of semiconductors has forced some automakers to curb production. died.
It also follows a series of recent acquisitions by Renesas, supported by the quest to increase the share of analog chips used to process signals such as sound, light and temperature.
Renesas, which has a market share of about 30% for microcontrollers used in automobiles, acquired US chip maker Intersil for $ 3.2 billion in 2017, and then acquired US chip design company Integrated Device Technology Inc in 2018 for 6.7 billion. I bought it for dollars.
Renesas said it will issue up to 270 billion yen ($ 2.6 billion) in new shares to raise funds for the transaction.
Revenue growth of about $ 200 million is expected in four to five years after the contract is signed, and cost reduction of $ 125 million will be realized in three years.
Renesas shares fell 3.6% after falling 6.9% on Monday, lagging behind a 2.1% rise in the broader market.