Farewell Intersil as Renesas takes over in $3bn deal
The deal, hard fought against Maxim Integrated, is expected to close in the first half of next year if approved by Intersil’s remaining shareholders who hold 43% of the company and by regulators. The acquisition of Fairchild Semiconductor by ON Semiconductor was by almost a year after regulatory concerns.
Combining Renesas’ microcontroller (MCU) and system-on-chip (SoC) products and technologies (which include the Hitachi and Mitsubishi devices) with Intersil’s power management and precision analogue capability, Renesas says it will be well positioned for key areas such as automotive, industrial, cloud computing, healthcare, and the Internet of Things (IoT).
The acquisition is also expected to expand Renesas’ product portfolio, particularly for analogue devices, where the market is expected to increase by approximately US$3.9 billion by 2020. This will bring Renesas head to head with Analog Devices, which is acquiring power specialist Linear Technology. Renesas anticipates the deal will bring savings of $170 million a year and will be financed from cash.
“Renesas is accelerating its focus of resources in automotive, industrial, infrastructure, and the rapidly growing IoT segments to aggressively grow its global business and maintain its position as a leading provider. Intersil’s extensive portfolio of analog and power devices as well as its strength in the automotive, industrial, and broad-based segments complement many of Renesas’ initiatives in these areas,” said Bunsei Kure, Representative Director, President and CEO of Renesas Electronics. “We believe that this compelling and complementary combination will bring significant synergies and cross selling opportunities as well as a system solution proposition which will pave the way for Renesas to strengthen its position as a leader in the global semiconductor market while delivering value to its customers with a unique product offering.”
“Intersil has been part of the industry’s evolution for many decades, carving out key niches and developing core technology that provides tangible benefits over competing solutions,” said Necip Sayiner, President, CEO and Director of Intersil. “As we’ve embarked on the most recent transformation over the last three years, we have honed the company’s core capabilities and focused them on areas where we are uniquely positioned to solve customer system challenges. The success of that strategy and the ability to improve the quality of the business is what has brought us to this next and exciting phase. We see great potential in combining the Intersil and Renesas portfolios and gaining the scale that will provide a platform for accelerated growth.”
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