Yahoo Finance InvenSense (INVN) Rallies 17.5% in TDK Acquisition Deal
On Wednesday, shares of InvenSense Inc. INVN are rallying, up around 17.5% in afternoon trading after the company agreed to be taken over by Japan’s TDK Corp. TTDKY.
Under the terms of the deal, TDK will acquire all outstanding InvenSense shares for $13.00 per share, which represents a 19.9% premium to yesterday’s closing price. It also reflects a total acquisition price of $1.3 billion. TDK, a Japanese electronics giant, will finance the transaction with cash on hand.
Both companies’ board of directors have unanimously approved the deal. It is expected to close in the second quarter of the fiscal year ending March 31, 2018, depending on the approval from regulators and InvenSense shareholders.
“This is an exciting day for InvenSense as our proposed acquisition by TDK represents what we view as a compelling win for InvenSense’s shareholders, customers and employees. TDK understands the value of InvenSense’s suite of sensor and software platforms. This merger is the culmination of years of innovation and execution by our world-class employees,” commented InvenSense’s President and CEO Behrooz Abdi.
INVN stock shot up almost 30% earlier this month on initial reports of TDK’s takeover interest. According to Reuters, who cited people familiar with the matter, TDK was originally planning to offer $12 per share for InvenSense, which would have represented a 45% premium to the company’s opening price that day.
InvenSense is a motion-sensing chip company that produces chips for smartphone makers Apple Inc. AAPL and Samsung SSNLF, among others. Its chips enable and calculate motion, allowing for augmented reality games like Pokémon Go, for example.
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