Renesas Electronics Corp has agreed to buy Dialog Semiconductor for 4.9 billion euros ($5.9 billion) in cash, boosting its position in low-power technology and connectivity across smart devices, cars and industry.
One of the world’s biggest auto chipmakers, Renesas aims to capitalise on technology shifts that are putting more electric vehicles on the streets with assisted driving technology while the rollout of 5G networks is connecting billions of devices to the so-called Internet of Things.
“The transaction we announced today represents our next important step in catapulting Renesas’s growth plan,” the Japanese company’s president and CEO, Hidetoshi Shibata, said on Monday of the latest in a string of acquisitions.
Renesas offered 67.50 euros a share for Apple Inc supplier Dialog, representing a 20% premium to Friday’s closing price and a 52% mark-up to a weighted three-month average.
The Frankfurt-listed shares in Anglo-German chip designer Dialog were up 16% at 65.28 euros in morning trade, just shy of the agreed sale price.
-REUTERS