Renesas: Acquired British Semiconductor Dialogue
Semiconductor giant Renesas Electronics:
Agreed to acquire Dialog Semiconductor in the UK for € 4,886 million (¥ 615.7 billion).
What is Renesas Electronics?
Renesas Technology, which was spun off from Mitsubishi Electric and Hitachi.
NEC Electronics, which was spun off from NEC.
The two companies merged and were established in April 2010.
Currently, INCJ, Ltd. (established separately from INCJ) is a major shareholder (as of the end of December 2019, holding 32.55%)
World’s top in-vehicle microcomputer:
Renesas holds a high share of in-vehicle semiconductors (third position globally).
In particular, it is the world’s top in-vehicle microcomputer.
Active in M & A:
We are very active in M & A.
In addition to the dialog announced this time,
2017 US Intersil Corporation,
2018 Integrated Device Tech Inc.,
We are acquiring.
Aiming to strengthen 5G core technology:
The dialog is
Smartphones for high-speed communication standard “5G” and
Demand for tablets is strong.
Among the sales, the feature is that the share for Apple is quite high.
Renesas seems to have the aim of strengthening the core technology of 5G with this deal.
Money voice
https://www.mag2.com/p/money/1018795/2
Renesas and Dialog Semiconductor to Join Forces to Advance Global Leadership in Embedded Solutions
February 8, 2021
Key Transaction Highlights:
Acquisition of Dialog’s low-power technologies and connectivity expertise centered around its mixed-signal integrated circuits (ICs) adds complementary product lines, strengthening Renesas’ global footprint across large, high-growth markets in the IoT, industrial and automotive fields,
Expected to result in incremental revenue growth of approximately 200 million USD (non-GAAP operating income, approximately 21.0 billion yen) from cross selling and access to fast-growing industries alongside continued innovation of solution offerings; expects cost savings from operational efficiencies to result in a financial impact of approximately 125 million USD (non-GAAP operating income per year on a run rate basis, approximately 13.1 billion yen),
EUR 67.50 per share in cash to be paid for all Dialog outstanding shares (on a fully diluted basis), equivalent to a total equity value of approximately EUR 4.9 billion,
Expected to be accretive to Renesas’ non-GAAP gross margin, and EBITDA after closing and to close by the end of 2021.
Renesas