Renesas Electronics completes its acquisition of Intersil:

2016-09-13

Renesas Electronics completes its acquisition of Intersil: developing and operating as a wholly-owned subsidiary

Tokyo, Japan, Milpitas, California, USA - Renesas Electronics Co., Ltd. (TSE: 6723), a leading global semiconductor solution provider, and Intersil (NASDAQ: ISIL), a leading supplier of innovative power management and precision simulation solutions, announced today that Renesas Electronics has completed its acquisition of Intersil. This transaction combines the advanced technology and mature terminal market experience of the two companies, consolidating Renesas Electronics' position as a leading global supplier of advanced embedded systems.

Renesas Electronics completes acquisition of Intersil: develops and operates as a wholly-owned subsidiary

This merger has produced a world leading Embedded solution provider.

Wu Wenjing, the representative director and CEO of Renesas Electronics, said, "Intersil's employees will join Renesas Electronics Group and merge into a powerful enterprise, enabling both companies to better drive innovation and respond to rapidly changing market changes and customer demands. I am very excited about this. With the completion of this acquisition, Renesas Electronics will become one of the industry giants with the most comprehensive and advanced embedded solutions. We believe that this remarkable complementary merger will generate significant synergies and cross selling opportunities, and create more value for customers and shareholders."

After today's transaction, Intersil will become a wholly-owned subsidiary of Renesas Electronics. Dr. Necip Sayiner will continue to serve as the President, CEO, and Director of Intersil, and will join Renesas Electronics management team as Executive Vice President on February 24, 2017. Renesas Electronics will focus on promoting the smooth integration of the two companies and plans to continue promoting technical support and future product development for Intersil's industry-leading power management and precision simulation solutions. Renesas Electronics also plans to continue operating Intersil's production facility in Palm Bay, Florida, USA, Intersil's headquarters in Milpitas, California, USA, as well as a design center and sales and support team serving Intersil's global customers.

According to its previous statement in September 2016, Renesas Electronics expects that the synergistic effect of expected cost efficiency resulting from short-term and long-term revenue growth opportunities and economies of scale will ultimately lead to a growth of $170 million (approximately 17 billion yen at a yen to dollar exchange rate of 100:1). After the completion of this transaction, it is expected that the gross profit and operating profit of Renesas Electronics will rapidly increase, and increase Renesas Electronics' non GAAP earnings per share and free cash flow.