Renesas to buy Intersil for $3.2B

|About: Intersil Corporation (ISIL)|By:, SA News Editor

Renesas Electronics (OTCPK:RNECF) agrees to acquire Intersil (NASDAQ:ISIL) for $22.50/share, a 14% premium to today's closing price, or ~$3.2B; ISIL +7.3% AH.

ISIL, whose chips are used in industrial, mobile and infrastructure applications, would expand Renesas' portfolio in analog chips and strengthen Renesas' nearly 40% share of the global market for microcontroller chips used in automobiles.

Renesas anticipates that near- and long-term revenue expansion opportunities combined with modest anticipated cost efficiencies associated with greater scale eventually will generate synergies of $170M/year.

Maxim Integrated Products (NASDAQ:MXIM) also was interested in purchasing ISIL, Reuters reports.

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