Renesas this month has announced plans to acquire IDT, making the move as part of a larger bid to expand its product portfolio with IDT's analog mixed-signal capabilities. The takeover will enable Renesas to strenghten its positions in the automotive applications market while also entering brand new markets from where it traditionally has been absent. The transaction has been approved by boards of directors of both companies and is expected to be completed within the first half of 2019, following approval by shareholders and regulators.

Renesas, which over the has years absorbed semiconductor assets from Hitachi, Mitsubishi Electric, and NEC, is a leading supplier of chips for various embedded solutions. Today the company is the largest supplier of SoCs, microcontrollers, and other chips for automotive applications, which has become a cornerstone of its business. Meanwhile, with the arrival of electric and autonomous vehicles the automotive market is evolving rapidly these days, and Renesas believes that in order to maintain and strengthen its hand going forward, it will need to offer solutions featuring a higher level of integration than the company’s products offer today. Furthermore, Renesas wants to take advantage of growing demand for semiconductors aimed at datacenters, industrial, communication infrastructure, and general IoT (the markets that are set to grow partly because of the revolution that is happening on the market of automotive applications). In a bid to enhance its product portfolio and gain the IP required to build new platforms for old and new markets alike, Renesas has been on an acquisition spree in the last couple of years.

In early 2017 the company took over Intersil, a maker of power management-related analog devices. This time around, the company wants to take over IDT, which will grant it access to a portfolio of devices that includes solutions for RF, high performance timing, memory interfaces, real-time and optical interconnects, wireless power delivery, and advanced sensors. As a result, the combination of IP developed by Renesas, ex-Intersil, IDT, will open up doors to a host of new opportunities for the “new Renesas”.

While product lines of Renesas and IDT sometimes overlap, in general they complement each other rather than compete. Therefore, Renesas expects the takeover to have an immediate positive effect on its revenue and margins. In particular, the compbined company will have an annual revenue of around $8 billion, an annual EBITDA of $2.117 billion, and a gross margin of 48.3%.

Under the terms of the agreement between Renesas and IDT, shareholders of the latter will sell their stock at a price of $49 per share, for an aggregate equity value of roughly $6.7 billion (about ¥733.0 billion at an exchange rate of 110 yen to the USD). Renesas will use internal cash reserves and a $6.071 billion (¥679 billion) loan from major banks to finance the transaction. Meanwhile, in a bid to acquire IDT, Renesas will establish a wholly owned subsidiary in Delaware that will merge with IDT after shareholders of the latter will receive their cash. As a result, IDT will become a fully-owned subsidiary of Renesas based in Delaware.

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Source: Renesas (1, 2)

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  • V900 - Tuesday, September 18, 2018 - link

    Oh Anandtech... It’s not me that has changed, it’s you.

    You used to be all about deep diving into architectures, SOCs and systems.

    You used to be so passionate.

    And today? I can’t even remember the last time you dived into an A series CPU.

    You promised me an iPad review. Remember?

    But always putting it off, there’s always something more important.

    And today, I come home from work ready to relax with you, maybe read up on some storage.

    And THIS is what I see? Mergers? Acquisitions? EBDIT?

    You been hanging out with those Wall Street guys again, haven’t you?
    Don’t deny it, I can smell options and tech incubators from all the way over here.

    You've changed Anandtech.... Sometimes I look at you, and I don’t even know what site I’m browsing anymore.
    Reply
  • BurntMyBacon - Tuesday, September 18, 2018 - link

    May I direct you to the recent nVidia Turing architecture deep dive:
    https://www.anandtech.com/show/13282/nvidia-turing...

    It was posted 4 days ago. I know, that's an eternity in this industry, but at least I can still remember it.

    I also don't recall the last A series deep dive, but I imagine deep dives on the CPU and GPU architectures used in the A series processor in question will give you most of the details you are looking for. Also, it would appear that AMD refers to processors with integrated graphics as a subset of their normal processor line now (Ryzen with G suffix), rather than using a separate product branding (A series).

    Lack of iPad review doesn't really bother me as it appears that Google has lost nearly all interest in the tablet market.

    Maybe be more selective about which articles you read. If you don't want to read about mergers, then read a different article.
    Reply
  • QinX - Tuesday, September 18, 2018 - link

    That Turing deep dive was done by a lot of sites and was managed by nVidia to spread awareness about what Turing actually is. Reply
  • mode_13h - Tuesday, September 18, 2018 - link

    Yeah, they pulled from the same source material, but has anywhere better insight than Anandtech?

    I like that Ryan isn't afraid to pull out the ol' compiler. How many reviewers can do that? Just sayin'.
    Reply
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