Renesas Electronics Corp. agreed to buy U.S. chipmaker Intersil Corp. for $3.2 billion, seeking to accelerate its 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.
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 its annual revenue.
The company counts Toyota Motor Corp., Nissan Motor Co. and Ford Motor Co. among its customers. Intersil's product lineup includes semiconductors that manage battery voltage in hybrid and electric vehicles and operate on-board cameras and displays.
Intersil, based in Milpitas, California, has climbed 55 percent this year through Monday's close, giving the company a market value of $2.7 billion.
Bunsei Kure, Renesas's chief executive officer, said after taking the position in June that he would look overseas for research and development. Renesas has begun to relocate some development to outside Japan, employing about 600 researchers in Vietnam and 300 in China, as well as some in Malaysia, the CEO said at the time.