TDK has agreed to acquire InvenSense for USD 13 cash per share, for a total acquisition price of USD 1.3 billion. The transaction has been unanimously approved by the boards of directors of both companies. Completion is expected in the second quarter of the fiscal year ending 31 March 2018, and is subject to approvals by InvenSense shareholders and the relevant regulatory authorities. 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 current 3-year management plan ending in March 2018 focuses on the importance of three areas, namely automotive, manufacturing devices and energy, and ICT. 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 IoT. TDK plans to expand its IoT business and provide a broad range of sensor products to its customers. TDK currently sells magnetic sensors that employ thin-film magnetic technology, as well as pressure, temperature, electric current, and various other sensor types, and TDK plans to expand its sensor business.
Through the acquisition of InvenSense, TDK expects to be able to strengthen its product line-ups and technologies, 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 next generation products and platforms.
InvenSense provides sensors for consumer devices including smartphones, drones, wearables, gaming, inertial navigation, and both optical and electronic image stabilization for cameras. Looking ahead, growth avenues beyond mobile include large addressable opportunities in the fields of IoT, automotive, and industrial, driven by increasing consumer demand of indoor navigation, VR, AR, and Advanced Driver Assistance Systems (ADAS).
The acquisition will enable TDK to combine InvenSense’s suite of sensor and software platforms with its portfolio of magnetic, pressure, temperature, and microphone sensors.
Back in January this year, TDK established a joint venture with Qualcomm, called RF360 Holdings Singapore, and has also entered into agreements to expand technical cooperation in passive components, batteries, wireless power transfer, sensors, MEMS and other technologies for mobile communications, IoT, and automotive. This joint venture is an opportunity for InvenSense to expand its customer base in ICT, IoT and automotive areas while enabling InvenSense to provide sensors with increased synergies.
