TDK agrees to buy InvenSense for $1.3B

December 22, 2016 // By Peter Clarke
TDK Corp., (Tokyo, Japan) has agreed to purchase inertial and microphone MEMS InvenSense Corp., (San Jose, CA) for about $1.3 billion in what will presumably be one of the last acts of consolidation in what has been the highly consolidatory 2016 for the semiconductor industry.

The deal is expected to complete in the second quarter of the fiscal year ending March 31, 2018, which is the third calendar quarter of 2017, and InvenSense will operate as a wholly-owned subsidiary of TDK.

It had been reported that the two companies were in discussions (see TDK in talks to buy InvenSense ) although $12 per share offer has apparently been increased to $13 per share. InvenSense announced that it hired a financial advisor to evaluate indications of interest in the company in November (see Could InvenSense suitors include Sony, ST, Intel or China? ).

The deal has now been approved by the boards of directors of both companies.

TDK already sells magnetic sensors that employ thin-film magnetic technology as well as pressure, temperature, electric current, and various other sensor types. The company has identified sensors and actuators as a key expansion area addressing applications in the automotive and industrial sectors and the Internet of Things. TDK said it intends to expand its sensor business.

InvenSense is a relative newcomer to the MEMS sensor scene but rose quickly to gain design wins with smartphone companies such as Apple and Samsung and to go public in 2011. It competes against Bosch Sensortec and STMicroelectronics in consumer electronics applications.

InvenSense's "fabless" manufacturing model enables development of high-performance and cost effective products via its unique CMOS-MEMS production process. InvenSense has also been a pioneer of sensor fusion where multiple sensor inputs are processed locally to produce more meaningful data.

"TDK's sensor business, one of its strategic growth areas, can be strengthened by merging TDK's portfolio of magnetic sensor technologies, where its strength lies, and its wide range of sensor products with InvenSense's expanding sensor technology," said Shigenao Ishiguro, CEO of TDK, in a statement.