Renesas Electronics has agreed to buy Dialog Semiconductor for 4.9 billion euros ($5.9 billion) in cash, as it looks to boost its position in low-power connectivity for smart devices, vehicles, and the enterprise.
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.
British-based Dialog had confirmed on Sunday that it had received an offer from Renesas after media reports of interest from the Japanese company and Franco-Italian chipmaker STMicroelectronics.
Dialog CEO Jalal Bagherli said its board had recommended the Renesas offer after extensive discussions, adding that it is subject to the UK takeover code and would consider any counter-bid.
MacDailyNews Take: Good luck to both Renesas Electronics and Dialog Semiconductor on the deal.