Renesas Electronics Corp. said Monday it will buy Britain's Dialog Semiconductor Plc., an Apple Inc. supplier, for 4.89 billion euros ($5.9 billion) as the Japanese firm aims to bolster its chip business.

Renesas will make Dialog a wholly owned subsidiary by the end of 2021 by purchasing some 72 million shares at 67.50 euros per share, a 20.3 percent premium to the British company's closing price of 56.12 euros on Friday.

The agreement comes as chipmakers are racing to increase output and address a global supply shortage triggered by robust demand for electronic devices as more people work from home amid the coronavirus pandemic.

Dialog "serves fast-growing areas including IoT, industrial and automotive," Renesas President and CEO Hidetoshi Shibata said in a release.

"By bringing Dialog's talented team and expertise into Renesas, together, we will accelerate innovation for customers and create sustainable value for our shareholders," Shibata said.

Dialog CEO Jalal Bagherli said the combined company will be "in an even stronger position to provide innovative products."

The deal reflects the expansion strategy of Renesas, which acquired U.S. semiconductor maker Intersil Corp. for $3.2 billion in 2017 and bought another U.S. chipmaker, Integrated Device Technology Inc., for $6.7 billion in 2019.

==Kyodo

© Kyodo News International, Inc., source Newswire