Renesas Completes Acquisition of Integrated Device Technology

The Combined Portfolios Contribute to Expand Renesas’ Global Footprint
in High-Data-Processing Markets

TOKYO & SAN JOSE, Calif.–(BUSINESS WIRE)–Renesas Electronics Corporation (TSE: 6723, “Renesas”), a premier
supplier of advanced semiconductor solutions, and Integrated Device
Technology, Inc. (“IDT”), a leading supplier of analog mixed-signal
products, including sensors, connectivity and wireless power, today
jointly announced the successful completion of Renesas’ acquisition of
IDT, as of March 30, 2019 JST, March 29, 2019 PDT, following approvals
by IDT shareholders and the relevant regulatory authorities.


Together with IDT, Renesas will now deliver an even broader range of
leading-edge technology and embedded solutions by combining IDT’s RF,
high-performance timing, memory interface, real-time interconnect,
optical interconnect, wireless power and smart sensors with Renesas
microcontrollers, system-on-chips and power management ICs. This
combined portfolio enables the creation of new classes of products and
solutions in fast-growing, data-economy applications across different
verticals, including industrial, infrastructure and automotive segments,
for customers and partners across the globe.

To immediately showcase how Renesas and IDT’s complementary product
portfolios work together to deliver comprehensive solutions, Renesas and
IDT developed 15 “Winning Combinations,” compelling Renesas-plus-IDT
product combinations that capture and highlight the technological
advantages Renesas and IDT provide as a combined company. Examples of
Winning Combinations include IDT automotive timing plus Renesas
R-Car processor solutions for automotive infotainment applications, an
IDT gas sensor plus Renesas MCU for IoT building automation air
quality control and other Winning Combinations for base station,
wireline and server applications. To learn more about the Renesas and
IDT Winning Combinations, visit www.renesas.com/solutions/idt.html.

As a result of the completion of the transaction, IDT became a wholly
owned subsidiary of Renesas. As of today, Dr. Sailesh Chittipeddi joined
Renesas’ executive team as Executive Vice President and will lead IDT as
President and CEO. Renesas is committed to a smooth and swift
integration of the two companies and continuation of technical support
and future product development for IDT’s industry-leading analog
mixed-signal products.

As previously announced, Renesas anticipates near- and long-term revenue
growth from expanded opportunities, access to fast-growing industries,
as well as cost savings from a larger business platform, which will
bring innovation and improvements along with an expected positive
financial impact in the region of US$250 million in non-GAAP operating
income per year on a run-rate basis. Renesas expects the acquisition to
be highly accretive to Renesas’ pro-forma non-GAAP gross margin,
non-GAAP EPS (earnings per share) and free cash flows immediately after
completion, consistent with prior guidance. Renesas completed the
transaction using approximately US$6.3 billion (approximately ¥693.0
billion at an exchange rate of 110 yen to the dollar), through a
combination of cash on hand and debt financing.

“We are thrilled to welcome some of the industry’s best and brightest
talent into our team to steer the future of innovation together,” said
Bunsei Kure, Representative Director, President and CEO of Renesas.
“This acquisition demonstrates our commitment to bringing more complete
solutions to our customers around the globe as we strengthen our
leadership position in the high-growth, data-driven economy markets of
automotive, industrial/IoT and datacenter/communications infrastructure
where our advanced data processing and analog/mixed-signal performance
is crucial. We fully expect to continue to significantly outgrow our
strategic market segments and drive profitability, allowing us to carry
on creating superior value for our customers and shareholders.”

“The product portfolios of Renesas and IDT are highly complementary. The
combination allows us to bring a more innovative and comprehensive
portfolio of products to the market, with a larger global footprint,
sales force and distribution network,” said Dr. Sailesh Chittipeddi,
Executive Vice President of Renesas and President and CEO of IDT. “The
winning combinations of products introduced today represent our
commitment to achieving an efficient and speedy integration of the two
companies and enabling our customers to get to market faster with
best-in-class solutions.”

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE:
6723
) delivers trusted embedded design innovation with complete
semiconductor solutions that enable billions of connected, intelligent
devices to enhance the way people work and live. A global
leader in microcontrollers, analog, power, and SoC products, Renesas
provides comprehensive solutions for a broad range of automotive,
industrial, home electronics, office automation, and information
communication technology applications that help shape a limitless
future. Learn more at renesas.com.

About IDT

Integrated Device Technology, Inc., a wholly owned subsidiary of Renesas
Electronics Corporation, develops system-level solutions that optimize
its customers’ applications. IDT’s market-leading products in RF, high
performance timing, memory interface, real-time interconnect, optical
interconnect, wireless power and smart sensors are among the company’s
broad array of complete mixed-signal solutions for the communications,
computing, consumer, automotive and industrial segments. Headquartered
in San Jose, Calif., IDT has design, manufacturing, sales facilities and
distribution partners throughout the world. Additional information about
IDT can be found at www.IDT.com.
Follow IDT on Facebook,
LinkedIn,
Twitter,
and YouTube.

Contacts

Renesas Electronics Corporation
Kyoko Okamoto
+81 3-6773-3001
pr@renesas.com

Integrated
Device Technology, Inc.
Krista Pavlakos
Director, Demand
Creation & Communications
Phone: (408) 574-6640
Email: Krista.Pavlakos@idt.com

Investor
Contacts

Renesas Electronics Corporation
Hirokazu Kato
+81
3-6773-3002
ir@renesas.com

Integrated
Device Technology, Inc.
Krishna Shankar
Head of Investor
Relations
408-574-6995
ir@idt.com