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Actionable news in ISIL: Intersil Corporation,

Japan’s Renesas Agrees to Buy Intersil for $3.2 Billion

  • Renesas is offering $22.50 a share, 14 percent premium
  • Company plans to pay with cash on hand, no new borrowing

Renesas Electronics Corp. agreed to buy U.S. chipmaker Intersil Corp. for a total of $3.2 billion, as the Japanese company seeks to accelerate efforts to sell more automotive components.

Renesas is offering $22.50 per share, a 14 percent premium to Monday’s close, according to a statement to the Tokyo Stock Exchange on Tuesday. The Tokyo-based company said it plans to pay for the purchase with cash on hand and expects the deal to close in the first half of 2017, subject to regulatory and shareholder approvals.

Renesas has emerged from years of losses by cutting jobs, closing down factories and shifting focus to automotive customers, a segment that is already generating almost half of annual revenue. The company counts Toyota Motor Corp., Nissan Motor Co. and Ford Motor Co. among its customers...