TDK to strenghten service offerings with sensor acquisition
Japanese firm to pay $1.3 billion for the U.S.-based motion sensor solutions specialist.
TDK reached an agreement to acquire U.S.-based motion sensor solution provider InvenSense for $1.3 billion. The transaction has been approved by the boards of directors of both companies.
The firms said the transaction is expected to close by mid-2017. Once completed, InvenSense will operate as a wholly-owned subsidiary of TDK.
TDK said its current medium-term management plan focuses on the importance of three areas: automotive; manufacturing devices and energy; and information and communications technology. As part of its strategy for growth in these key areas, TDK identified sensors and actuators, energy units and next-generation electronic components as product areas for strategic growth.
Through the acquisition of InvenSense, the Japanese company said it will be able to strengthen its available technologies and portfolio of solutions, with the combined company a stronger player in broad-based sensor solutions for the “internet of things,” automotive and ICT by accelerating the sensor product roadmap to offer next-generation products and platforms.
“TDK’s sensor business, one of its strategic growth areas, can be strengthened by merging TDK’s portfolio of magnetic sensor technologies and its wide range of sensor products with InvenSense’s expanding sensor technology,” said TDK President and CEO Shigenao Ishiguro. “This acquisition is a fundamental element in TDK’s strategy to provide unique and high value-added products and services in IoT. We aim to become a strong player in the sensor business with InvenSense as our perfect partner.”
Over the last years, InvenSense has rapidly expanded to become a global player in sensors for consumer devices including smartphones, drones, wearables, gaming, inertial navigation, optical and electronic image stabilization for cameras. Looking ahead, the company identified growth opportunities in the fields of IoT, automotive and industrial, driven by increasing consumer demand of indoor navigation, virtual reality, augmented reality and advanced driver assistance systems.