Renesas Electronics Corp lately has shared intend to acquire U.S.-based Integrated Device Technology Inc. The deal is reported to surpass $6 billion and help explore Renesas Electronics in newer technologies in the automotive segment.
The companies are in the final stages of talks and are to meet at the beginning of next week. The prospects for striking an agreement remain unclear, but the Japanese chipmaker is expected to make a tender offer for all of IDT’s shares at a premium.
On the other hand, Renesas in a statement cleared that a deal with IDT was just one option under consideration and that nothing had been decided.
An acquisition of the auto and network electronics parts-maker would mark another significant expansion for Renesas. In June, Chief Financial Officer Hidetoshi Shibata said the Tokyo-based company was planning acquisitions outside of the automotive industry and into fields from health care to aerospace.
Renesas, second only to NXP Semiconductors in automotive market share, gets more than half of its revenue from auto-sector customers.
In an another statement disseminated earlier said, the Japanese automotive chipmaker major acknowledged that the talks are in progress. “While the company is considering the reported acquisition to accelerate its business growth, no definitive decision has been reached,” Renesas said. The company said it will make a prompt announcement if it makes any concrete decisions.
Renesas is the world’s second-largest producer of automotive chips. With this latest acquisition, it is known to explore self-driving systems with IDT’s expertise.