Japan's TDK to buy US chip maker InvenSense for $1.3 bn
21 December 2016
Japanese electronic parts maker TDK Corp today struck a deal to buy US-based chip maker InvenSense Inc, for $1.33 billion in order to strengthen its position in sensor systems.
Under the terms of the deal, TDK has offered to pay $13 per share, a 19.9 per cent premium to InvenSense' yesterday closing price.
Founded in 2003 and based in San Jose, California, InvenSense designs motion tracking sensor system on chip for consumer electronic devices such as smartphones, tablets, wearables, gaming devices, optical image stabilisation, and remote controls for Smart TVs.
It makes motion sensors for Apple Inc and Samsung Electronics Co, and gyroscopes which help smartphones calculate motion, enabling augmented reality games such as Pokemon Go.
MotionTracking is rapidly becoming a key function in every consumer electronics device as it provides a more intuitive way for consumers to interact with their electronic devices by tracking their motions in free space and delivering these motions as input commands.
InvenSense MotionTracking portfolio accurately tracks complex user motions requires the use of motion sensors such as gyroscopes, accelerometers, compasses, and pressure sensors, properly calibrating the data, and then fusing the sensor outputs into a single and accurate data stream for use by motion applications.
The acquisition of InvenSense will allow TDK to strengthen its product line-ups and technologies, and 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.
TDK, formerly TDK Electronics Co., Ltd, is a Japanese multinational electronics company that manufactures electronic materials, electronic components, and recording and data-storage media.
It was established in Tokyo in 1935 to manufacture the iron-based magnetic material ferrite, and later began to make magnetic tapes, with compact cassette tapes.
TDK used to manufacture a wide range of magnetic and optical media, including several formats of videotape and blank CD-R and recordable DVD discs until it sold its recording business to Imation in 2007.
''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 TDK's president and CEO, Shigenao Ishiguro.
This acquisition is a fundamental element in TDK's strategy to provide unique and high-value-added products and services in IoT,'' he added.
''TDK understands the value of InvenSense's suite of sensor and software platforms. This merger is the culmination of years of innovation and execution by our world-class employees. Together with TDK, we see a bright future that leverages our commitment to innovation with TDK's scale, significant partner relationships and distribution channel,'' said InvenSense's president and CEO Behrooz Abdi.