Integrated Device Technology Inc (NASDAQ: IDTI) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it will be acquired in a deal representing an incredible premium. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from IDTI stock as a result; and
- what we’ll be watching for ahead.
IDTI Announces Acquisition News
As mentioned above, Integrated Device Technology is having an incredibly strong start to the trading session this morning after news broke that the company will be acquired. In a press release issued early this morning, the company said that it had entered into a definitive agreement, under which Renesas will acquire IDTI for a price of $49.00 per share in an all cash transaction. That brings the total acquisition price to approximately $6.7 billion. In a statement, Bunsei Kure, Prepresentative Director, President and CEO at Renesas, had the following to offer:
This acquisition will bring us complementary, market-leading analog mixed-signal assets and an incredibly talented group of professionals to help us boost our embedded solution capabilities… IDT’s products combined with our MCUs, SoCs and power management ICs will enable Renesas to widen its product offerings as well as to expand its reach into areas such as the growing data economy-related space.
The above statement was followed up by Gregory L. Waters, President and CEO at IDTI. Here’s what he had to offer:
The combination of Integrated Device Technology’s analog mixed-signal leadership with Renesas’ world-leading microcontroller and automotive/industrial franchise creates a new global powerhouse… The Combined company will possess the key capabilities that customers in the modern data economy demand.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of IDTI, the news proved to be overwhelmingly positive. After all, not only will the company be acquired, the acquisition is happening at a strong premium, offering an immediate return of value for shareholders. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:12), IDTI is trading at $47.00 per share after a gain of $4.92 per share or 11.69% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on IDTI. In particular, we’re interested in following the story surrounding the company’s acquisition. While the definitive agreement has been signed, the transaction is still subject to customary closing conditions and regulatory approval. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!