Renesas Electronics, a semiconductor supplier, and Intersil, a power management supplier, have announced the completion of Renesas' take over.
"The transaction brings together the advanced technology and deep end-market expertise of the two companies, and solidifies Renesas' position as a leading global supplier delivering advanced embedded systems to customers," a joint statement said.
"I am excited to welcome the Intersil employees into the Renesas Group and look forward to building a robust organisation that will bring the capabilities of both companies to bear to proactively address changing market dynamics and customer needs," said Bunsei Kure, representative director, president and CEO of Renesas. "With the close of this acquisition, Renesas has transformed into an industry powerhouse with one of the most comprehensive set of advanced embedded solutions. We believe that this compelling and complementary combination will enable significant synergies and cross-selling opportunities and contribute to creating superior value for our customers and stakeholders."
Intersil is now a wholly-owned subsidiary of Renesas. Necip Sayiner has joined Renesas as executive vice president and will continue to head Intersil as president, chief executive officer and director.
Renesas will focus on achieving a smooth integration of the two companies and intends to continue technical support and future product development for Intersil's power management and 'precision analogue solutions'.
Renesas also plans to continue operations at Intersil's production facility in Palm Bay, Florida, and Intersil's home office in Milpitas, California, as well as the design centres and sales and support organisations serving customers globally.
As previously announced, in September 2016, Renesas expects near- and long-term revenue expansion opportunities combined with the modest anticipated cost efficiencies associated with greater scale will eventually generate synergies of US$170m (approximately JPY17bn at an exchange rate of JPY100 to the dollar). The transaction is expected to immediately increase the supplier's gross and operating margins and be accretive to non-GAAP earnings per share and free cash flows after closing.
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