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The reason for the acquisition is that Renesas will be able to combine Intersil’s power management and analogue capability with its microcontrollers and system-on-chip (SoC) products.
It will fit with Renesas’ main target markets of automotive, industrial, cloud computing, healthcare, and the Internet of Things (IoT).
There will benefits from economies of scale and cost-cutting. According to Renesas, an increase in revenues along with what it called “modest anticipated cost efficiencies associated with greater scale” will eventually add $170m to the bottom line.
Bunsei Kure, president and CEO of Renesas Electronics, writes:
“We believe that this compelling and complementary combination will bring significant synergies and cross selling opportunities as well as system solution proposition.”
This follows three years which has seen Intersil implement a policy of narrowing its product offering and focus on specific market areas.
“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, Intersil.
Closing of the transaction is expected in the first half of 2017, following approval by Intersil shareholders and the relevant governmental authorities.
