Image source: Intersil Corp.
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Shares ofIntersil Corp(NASDAQ: ISIL)climbed 9.8% on Tuesday after the U.S.-based semiconductor company agreed to be acquired by Japan's Renasas Electronics Group.
The announcement confirms a report last month from Reuters, which at the time cited an industry source as stating Renasas was in the "final stages of negotiations" to acquire Intersil for as much as $3 billion.
When all was said and done, Renasas agreed to purchase Intersil for $22.50 per share in cash, representing an equity value for the company of roughly $3.2 billion. This also represents a premium of 43.9% over Intersil's "unaffected price" -- that is, before news of the acquisition broke last month -- and an almost 14% premium to Monday's close.
The deal has already been unanimously approved by the boards of directors of both companies. And though it still requiresthe approval of both Intersil shareholders and government authorities, the transaction is expected to close in the first half of 2017.
Intersil CEO Necip Sayiner added:
In the end, with Intersil shares now trading at only a slight discount to the acquisition price, I think investors would be wise to take today's profits and put them to work elsewhere.
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