Intersil Corp. (ISIL
), the California-based maker of analog integrated circuits, saw its share price jump at the news it would be sold to Renesas Electronics Corp. of Japan.
Renesas plans to buy the computer chip-maker for $22.50 per share – or $3.2 billion in total – in cash, once the deal is completed sometime next year. Shares of the Milpitas-based company were up by more than 10 percent to $21.76 by noon on Nasdaq, following a steady incline in prices since early summer and since rumors of a sale last month. The high was also more than double the company's 52-week low of $10.50.
Completing the sale – which could become final as early as the first half of 2017 – will require shareholder approval, but was described by Renesas, as a “friendly acquisition.” It will result in Intersil becoming a wholly owned subsidiary of the Japanese electronics company.
Renesas' decision to buy the company coincides with its move into automotive electronics business, according to the Wall Street Journal.
Intersil, which has annual sales of about $520 million, makes analog integrated circuits used in automotive, optical storage and communications products, such as lithium-ion battery pack monitoring equipment that manages voltage output and temperature.