On February 25, 2017, Renesas Electronics Corporation (' Renesas Electronics '), a leading global provider of semiconductor solutions, and Intersil Corporation (' Intersil '), a leading provider of innovative power management and precision analog solutions, announced today that Renesas Electronics has completed the acquisition of Intersil. The transaction combines the advanced technology and proven end-market experience of the two companies and strengthens Renesas Electronics' position as a leading global supplier of advanced embedded systems.

Wenjing Wu, Representative Director and President and Chief Executive Officer of Renesas Electronics, said, 'I am excited that Intersil's employees will join the Renesas Electronics Group and merge into one strong enterprise, enabling both companies to better advance innovation and respond to rapidly changing market changes and customer needs. With the completion of this acquisition, Renesas Electronics will become one of the industry giants with the most comprehensive and advanced embedded solutions. We believe that this compelling and complementary combination will generate significant synergies and cross-selling opportunities and create additional value for customers and shareholders.'

Following the closing of today's transaction, Intersil will become a wholly-owned subsidiary of Renesas Electronics, and Dr. Necip Sayiner will continue to serve as President and Chief Executive Officer and Director of Intersil and will join Renesas Electronics' management team as Executive Vice President effective February 24, 2017. Renesas will focus on the smooth integration of the two companies and plans to continue to drive technical support and future product development for Intersil's industry-leading power management and precision simulation solutions. Renesas also plans to continue operating Intersil's production facility in Palm Bay, Florida, USA; Intersil's headquarters in Milpitas, California, USA; and the design center and sales and support teams that serve Intersil's global customers.

As previously announced in September 2016, Renesas anticipates that the combination of near-term and long-term revenue growth opportunities and expected cost efficiencies resulting from economies of scale will ultimately result in an increase of $170 million (approximately ¥17 billion at an exchange rate of ¥100 to USD). Upon closing, the transaction is expected to be accretive to Renesas' gross profit and operating profit and accretive to Renesas' non-GAAP earnings per share and free cash flow.