TDK Corp. agreed to buy InvenSense Inc. in a deal that values the supplier of sensors to Apple Inc. and other smartphone makers at about $1.3 billion.
The offer is worth $13 a share in cash for the San Jose, California-based company, according to a BusinessWire statement on Wednesday. The bid is 20% higher than InvenSense’s closing price of $10.84 on Tuesday.
InvenSense makes gyroscopes, which track motion and rotation in 3D space. In smartphones, they are used to tell if a phone is being held horizontally or vertically, being shaken, or pointing in the direction of a Pokemon, among other uses. TDK, which rose to prominence on cassette tapes in the 1970s, has expanded into batteries, automotive components and now the so-called Internet of Things.
Apple is already TDK’s biggest customer, accounting for more than 11% of sales, according to data compiled by Bloomberg. The maker of iPhones accounts for more than half of InvenSense sales.
“We aim to become a strong player in the sensor business with InvenSense as our perfect partner,” TDK chief executive officer (CEO) Shigenao Ishiguro said in the statement.
Tokyo-based TDK said it’s funding the deal from existing cash holdings.
Bank of America Merrill Lynch is acting as TDK’s exclusive financial adviser and Qatalyst Partners is advising InvenSense.
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Source: Mint
