TDK to acquire U.S. Chip manufacturer InvenSense for $1.33 billion

InvenSense produces gyroscopes for Samsung’s and Apple’s smartphones. The acquisition will expand TDK’s footprint in the sensor technology segment.

Japan’s TDK Corp, an electronics part manufacturer, has disclosed that it is all set to acquire U.S chip manufacturer InvenSense Inc., which produces motion sensors for Samsung Electronics Co. and Apple Inc., for $1.33 billion.

In statement TDS has stated it will be paying $13 per share to acquire InvenSense. This represents a 19.9% premium to InvenSense’s closing price as on Tuesday.

The deal will allow TDK, a major smartphone component supplier, to widen its footprint and boost its sensor technology offerings.

InvenSense designs gyroscopes which are used in smartphones to calculate motion, enabling a variety of apps, including augmented reality games such as Pokemon Go.

BofA Merrill Lynch acted as TDK’s financial adviser, while Qatalyst Partners advised InvenSense on this deal.

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