Renesas Electronics Corp., a supplier of advanced semiconductor solutions, and Intersil Corp., a provider of innovative power management and precision analog solutions, has announced the completion of Renesas’ acquisition of Intersil Corp. The transaction brings together the advanced technology and deep end-market expertise of the two companies, and solidifies Renesas’ position as a leading global supplier delivering advanced embedded systems to customers.
“I am excited to welcome the Intersil employees into the Renesas Group and look forward to building a robust organization that will bring the capabilities of both companies to bear to proactively address changing market dynamics and customer needs,” said Bunsei Kure, Representative Director, President and CEO of Renesas Electronics Corp. “With the close of this acquisition, Renesas has transformed into an industry powerhouse with one of the most comprehensive set of advanced embedded solutions. We believe that this compelling and complementary combination will enable significant synergies and cross-selling opportunities and contribute to creating superior value for our customers and stakeholders.”
Renesas will focus its efforts on achieving a smooth integration of the two companies and intends to continue technical support and future product development for Intersil’s industry-leading power management and precision analog solutions.
Renesas also plans to continue operations at Intersil’s production facility in Palm Bay, Florida, US and Intersil’s home office in Milpitas, California, US, as well as the design centers and sales and support organizations serving Intersil customers globally.
As previously announced in September 2016, Renesas anticipates that near- and long-term revenue expansion opportunities combined with the modest anticipated cost efficiencies associated with greater scale will eventually generate synergies of $170 million (approximately 17 billion yen at an exchange rate of 100 yen to the dollar). The transaction is expected to immediately increase Renesas’ gross and operating margins and be accretive to Renesas’ non-GAAP earnings per share and free cash flows after closing.