TOKYO—Renesas Electronics Corp. will buy California-based Integrated Device Technology Inc. for $6.7 billion, the Japanese chip maker said Tuesday.
Renesas 6723, +4.43% 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 IDTI, -1.36% stock price as of Aug. 30.
Renesas said the IDT acquisition will help to expand its presence in the auto industry.
An expanded version of this article appears at WSJ.com
Also popular on WSJ.com:
Get the top tech stories of the day delivered to your inbox. Subscribe to MarketWatch's free Tech Daily newsletter. Sign up here.