TOKYO (Reuters) - Japanese chipmaker Renesas Electronics Corp said on Tuesday it had agreed to buy U.S. peer Integrated Device Technology Inc for about $6.7 billion, aiming to boost its expertise in self-driving car technologies.
The deal allows Renesas, second only to NXP Semiconductors NV in chips used in cars, to bring on board IDT's know-how in chips for wireless networks and data storage which are crucial for self-driving cars.
Renesas will pay $49.00 per share in cash for all IDT outstanding shares, compared with Monday's close at $42.08, and expects the deal to close in the first half of 2019.
It will finance the acquisition with 679 billion yen ($6.1 billion) of bank loans and cash, it said in a statement.
Renesas was created in 2010 from a merger of NEC Corp's chip division and Renesas Technology, which itself was established through a merger of the chip units of Hitachi Ltd and Mitsubishi Electric Corp.
It was late to join a wave of consolidation in the chip industry as it struggled to recover from damage suffered at key plants in an earthquake that hit Japan in 2011.
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Last year it bought U.S. chipmaker Intersil Corp for $3.2 billion to expand its portfolio in analog chips, which process signals such as sound, light and temperature before converting them into digital signals.
($1 = 111.3900 yen)
(Reporting by Chris Gallagher and Chang-Ran Kim; Editing by Stephen Coates and Edwina Gibbs)
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