SiTime shares rise 14.64% after-hours after acquiring Renesas' timing business for $1.5B in cash and shares.

SiTime surged 14.64% in after-hours trading following the announcement of a $1.5 billion acquisition of Renesas Electronics' timing business, combining cash and stock. The deal, expected to close by late 2026, expands SiTime’s clocking portfolio over tenfold and accelerates its path to $1 billion in revenue. The acquired business, with a 30-year legacy, is projected to generate $300 million in annual revenue post-transaction, bolstered by SiTime’s sales expertise. The transaction, funded by cash reserves and $900 million in debt, is not subject to financing conditions and aligns with SiTime’s strategy to integrate MEMS resonators into embedded computing products. Renesas’ CEO will join SiTime’s board post-close, signaling strategic collaboration. The move strengthens SiTime’s position in high-growth sectors like AI datacenters and comms, driving investor optimism amid a 88% year-to-date stock gain.