Regulatory Approval Received for Renesas Acquisition of Intersil
Renesas Electronics Corporation and Intersil Corporation today announced that they received notification by the Committee on Foreign Investment in the United States on February 21, 2017 PST; February 22, 2017 JST that the investigation of the merger transaction under which Renesas will acquire Intersil is complete and that there are no unresolved national security concerns with respect to the transaction.
All necessary regulatory approvals for the acquisition have now been received and the merger is expected to close on February 24, 2017 PST, subject to customary closing deliveries. Intersil stockholders have previously voted to adopt the merger agreement and approve the transaction at a special meeting of stockholders held on December 8, 2016.
In September of 2016, the companies signed a definitive agreement for Renesas to acquire Intersil for US$22.50 per share in cash, representing an aggregate equity value of approximately US$3.2 billion (approximately 321.9 billion yen at an exchange rate of 100 yen to the dollar). Closing of the transaction is expected in the first half of 2017. $3.2 billion represents a premium of 43.9% to Intersil's closing share price on August 19, 2016, one business day before pre-deal announcement leaks on August 22, 2016. This acquisition creates a highly-synergistic, complementary product portfolio of system solutions targeted at large opportunities in the automotive, industrial, and IoT markets.