TDK to acquire chip maker InvenSense

TDK will acquire all of the outstanding InvenSense shares for cash at an acquisition price of USD 13.00 per share, for a total acquisition value of USD 1.3 billion. The deal has been unanimously approved by the boards of directors of both companies and completion of the transaction isn’t expected to happen until the second quarter of the fiscal year ending March 31, 2018. The deal also still needs approvals from InvenSense’s shareholders and relevant regulatory authorities, the companies states in a joint press release. The acquisition will be completed through a merger of a newly created subsidiary of TDK with and into InvenSense, with InvenSense continuing following the merger as a wholly-owned subsidiary of TDK. TDK’s says that its plans for the future puts emphasis on three areas: Automotive, Manufacturing devices and energy, and Information and Communications Technology (ICT). As part of its strategy for growth in these key areas, TDK has identified sensors and actuators, energy units and next-generation electronic components as three product areas for strategic growth aimed at unlocking new business opportunities in the fields of Internet of Things (IoT). TDK currently sells magnetic sensors that employ thin-film magnetic technology, which TDK has accumulated through its endeavors with hard disk drive (HDD) solutions over many years. Through the acquisition of InvenSense, TDK will be able to strengthen its product line-ups and technologies, which is expected to enable the combined company to become a stronger player in broad based sensor solutions for IoT, automotive and ICT by accelerating the sensor product roadmap to offer innovative next generation products and platforms. 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. Looking beyond mobile, growth avenues include large addressable opportunities in the fields of IoT, automotive, and industrial, driven by increasing consumer demand of indoor navigation, Virtual Reality (VR), Augmented Reality (AR), and Advanced Driver Assistance Systems (ADAS).