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Japan’s TDK to Buy U.S. Chip Maker For $1.3 Billion

December 22, 2016, 1:18 AM UTC
Logo of TDK Corp is pictured at the company headquarters in Tokyo
The logo of TDK Corp is pictured at the company headquarters in Tokyo, Japan, December 2, 2015. TDK Corp's chief executive said on Wednesday the Japanese parts maker is expecting to win more orders next year from its major North American customer, understood to refer to Apple Inc, as new iPhones are set to carry improved features. REUTERS/Toru Hanai - RTX1WS3X
© Toru Hanai / Reuters REUTERS

(Reuters) – Japanese electronic parts maker TDK said it had agreed to buy InvenSense, a U.S. chip maker that produces motion sensors for Apple and Samsung Electronics, for $1.33 billion.

In a statement on Wednesday, TDK said it will pay $13 per share to buy all of InvenSense, representing a 19.9% premium to the U.S. company’s closing price on Tuesday.

Earlier this month, Reuters reported TDK was in talks to buy InvenSense.

The deal would allow TDK, already a major smartphone components supplier, to boost its sensor technology offerings. InvenSense designs gyroscopes which help smartphones calculate motion, enabling augmented reality games such as Pokemon Go.

BofA Merrill Lynch was the financial adviser for TDK, while Qatalyst Partners advised InvenSense.