By Takashi Mochizuki
TOKYO—Renesas Electronics Corp. will buy California-based Integrated Device Technology Inc. for $6.7 billion, the Japanese chip maker said Tuesday.
Renesas /zigman2/quotes/203872935/delayed JP:6723 +2.53% isn’t planning a new share offering to finance the deal. Instead, it will use cash and new loans from its banks, worth a total of 679 billion yen ($6.1 billion). The $6.7 billion price tag translates to $49 a share, a 29.5% premium over IDT’s stock price as of Aug. 30.
Renesas said the IDT acquisition will help to expand its presence in the auto industry.
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