TOKYO, Japan, and LONDON, March 23, 2019 – Renesas Electronics Corporation (TSE: 6703, Representative Director and President and CEO: Hidetoshi Shibata, hereinafter “Renesas”), a premier supplier of advanced semiconductor solutions, and Dialog Semiconductor Plc (Headquarters: Reading, UK, hereinafter “Dialog”), a UK-based analog semiconductor company providing battery and power management, Wi-Fi, Bluetooth® Low Energy technology, and industrial edge computing solutions, today announced the completion of Renesas’ acquisition of all of Dialog’s issued and to be issued common shares (hereinafter “the Acquisition”). Renesas will use a combination of borrowings, cash on hand, and approximately 222.6 billion yen in proceeds raised through equity financing to fund the cash consideration of approximately €4.8 billion (approximately 624 billion yen at an exchange rate of 130 yen to the euro) to be paid to Dialog shareholders.

Regarding the completion of the acquisition, Renesas Representative Director and President and CEO Hidetoshi Shibata said,
"Today marks an important milestone for Renesas. This acquisition builds on the Company long-term strategy to deliver complementary solutions that combine leading-edge analog and mixed-signal products to bring value and innovation to our customers," said Renesas President and CEO, Masahiro Ikeda.
"We are pleased to welcome Dialog's talented people, customers and suppliers to the Renesas community. Our combined strengths will expand our engineering team and provide a diversified product portfolio for a wide range of attractive markets. Together, we will capitalize on high-growth opportunities in the IoT, industrial and automotive sectors."

Following previous acquisitions of Intersil and IDT, the completion of the acquisition of Dialog strengthens Renesas' position as an embedded solutions provider. Dialog's low-power mixed-signal products, low-power Wi-Fi and Bluetooth® connectivity technologies, flash memory, battery power management, and Dialog's long track record and deep expertise in configurable mixed-signal (CMIC) will expand Renesas' product portfolio and increase Renesas' presence in the market.

The acquisition will also enable Renesas to seamlessly and borderlessly serve its customers around the world, streamlining its ability to bring new products to market. As an immediate benefit to customers, Renesas and Dialog are announcing today more than 35 "winning combinations." It brings together the comprehensive engineering strengths of both companies and combines "embedded processor (microcomputer/SoC) + analog + power + connectivity" products. For more information, please see today's announcement of "More than 35 'Winning Combinations' Combining Renesas and Dialog Products" and the Winning Combinations special site at www.renesas.com/win.

Renesas expects to increase sales by approximately 200 million US dollars (Non-GAAP operating income, approximately 21 billion yen) through the provision of cross-selling and winning combinations. Furthermore, cost savings of approximately US$125 million (approximately JPY13.1 billion, realized within three years from the completion of the acquisition at the annual non-GAAP operating income run rate) are expected through streamlining of operations. As previously disclosed, Renesas' EBITDA, gross margin and operating margin (all on a non-GAAP basis) will also be accretive after the closing of the transaction.

Upon completion of the acquisition, Dialog became a wholly owned subsidiary of Renesas. Approximately 2,300 Dialog employees will join the Renesas Group and the two companies will merge their businesses.

About Renesas

Renesas Electronics Corporation (TSE: 6723) is bringing about the evolution of embedded devices by connecting all kinds of things and making them intelligent in order to realize a society where people can live safely and securely. In addition to microcontrollers, which boast a large share of the global market, we provide analog & power devices, SoCs, and other semiconductors and a wide range of solutions for the automotive, industrial, infrastructure, and IoT fields in order to create an infinite future. I will continue. For more information on Renesas, please visit renesas.com. Follow us on SNS here: LinkedIn, Facebook, Twitter, YouTube.

About Dialog

Dialog Semiconductor Plc, a wholly owned subsidiary of Renesas Electronics Corporation, is a leading supplier of standard and custom ICs for IoT and Industry 4.0 related applications. We mainly provide battery management, Bluetooth® Low Energy technology, Wi-Fi, flash memory, and configurable mixed signal ICs. Dialog's unparalleled expertise improves power efficiency and reduces charge time, enabling performance and productivity on the go, taking today's devices into the next generation.

(Note) Dialog and the Dialog logo are trademarks of Dialog Semiconductor Plc and its subsidiaries. Bluetooth is a registered trademark of Bluetooth SIG, Inc. All product and service names in this release are trademarks or registered trademarks of their respective owners.