Japanese component manufacturer TDK Corporation has entered into a definitive agreement to acquire all outstanding shares in U.S. chip maker — and Apple supplier — InvenSense. TDK will acquire all of the outstanding InvenSense shares for cash at an acquisition price of $13 per share, for a total acquisition value of $1.3 billion.
The deal has been unanimously approved by the boards of directors of both companies but the transaction isn’t expected to be completed until the second quarter of the fiscal year ending March 31, 2018. Approvals from InvenSense’s shareholders and relevant regulatory authorities are also required.
The acquisition will be completed through a merger of a newly created subsidiary of TDK with InvenSense, which will continue as a wholly-owned subsidiary of TDK.
“TDK’s sensor business, one of its strategic growth areas, can be strengthened by merging TDK’s portfolio of magnetic sensor technologies (where its strength lies) and its wide range of sensor products with InvenSense’s expanding sensor technology,” said Shigenao Ishiguro, President and CEO of TDK in a statement. “This acquisition is a fundamental element in TDK’s strategy to provide unique and high-value-added products and services in IoT. We aim to become a strong player in the sensor business with InvenSense as our perfect partner.”
Through the acquisition of InvenSense, TDK will be able to strengthen its product lineup and technologies, which should help the combined company become a stronger player in broad-based sensor solutions for IoT, automotive and Information and Communications Technology (ICT).
InvenSense’s “fabless” manufacturing model enables development of high-performance and cost effective products via its CMOS-MEMS production process. The company has over the years expanded rapidly to become a strong player in sensors for consumer devices including smartphones, drones, wearables, gaming, inertial navigation, and both optical and electronic image stabilization for cameras.