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Business News/ Companies / TDK agrees to buy InvenSense for about $1.3 billion in cash
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TDK agrees to buy InvenSense for about $1.3 billion in cash

Tokyo-based TDK says it's funding the InvenSense deal from existing cash holdings

InvenSense makes gyroscopes, which track motion and rotation in 3D space.Premium
InvenSense makes gyroscopes, which track motion and rotation in 3D space.

Hong Kong: TDK Corp. agreed to buy InvenSense Inc. in a deal that values the supplier of sensors to Apple Inc. and other smartphone makers at about $1.3 billion.

The offer is worth $13 a share in cash for the San Jose, California-based company, according to a BusinessWire statement on Wednesday. The bid is 20% higher than InvenSense’s closing price of $10.84 on Tuesday.

InvenSense makes gyroscopes, which track motion and rotation in 3D space. In smartphones, they are used to tell if a phone is being held horizontally or vertically, being shaken, or pointing in the direction of a Pokemon, among other uses. TDK, which rose to prominence on cassette tapes in the 1970s, has expanded into batteries, automotive components and now the so-called Internet of Things.

Apple is already TDK’s biggest customer, accounting for more than 11% of sales, according to data compiled by Bloomberg. The maker of iPhones accounts for more than half of InvenSense sales.

“We aim to become a strong player in the sensor business with InvenSense as our perfect partner," TDK chief executive officer (CEO) Shigenao Ishiguro said in the statement.

Tokyo-based TDK said it’s funding the deal from existing cash holdings.

Bank of America Merrill Lynch is acting as TDK’s exclusive financial adviser and Qatalyst Partners is advising InvenSense. Bloomberg

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Updated: 21 Dec 2016, 05:34 PM IST
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