Overview
- The consideration includes $1.5 billion in cash plus about 4.13 million SiTime shares, with the cash funded from existing cash and a $900 million committed facility from Wells Fargo.
- Both companies’ boards unanimously approved the transaction, which is subject to regulatory clearance and is targeted to close by the end of 2026.
- SiTime expects the acquired business to generate roughly $300 million in revenue in the first 12 months after closing with about 70% gross margins, concentrated in AI datacenter and communications markets.
- A memorandum of understanding sets up collaboration to integrate SiTime’s MEMS resonators into Renesas chips, a pathway the company says could reach billions of units over time but will take at least a couple of years to impact revenue.
- Market reaction was strong, with SiTime shares closing up 17.9% after the announcement, and Reuters described the deal value as potentially reaching up to $3.2 billion.