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Shares of Intersil Corp. (NASDAQ: ISIL) saw a handy gain on Tuesday after Japanese chip maker Renesas Electronics announced that it will acquire the company for roughly $3.2 billion. This breaks down to $22.50 per share.

The transaction was unanimously approved by both boards of directors, and it is expected to close in the first half of 2017. Although, it is still subject to shareholder and regulatory approval.

Renesas anticipates near-term and long-term revenue expansion opportunities, combined with the modest anticipated cost efficiencies associated with greater scale, eventually will generate synergies of $170 million. Ultimately, the transaction is expected to immediately increase both gross and operating margins and be accretive to Renesas’s earnings and free cash flows after closing.

Bunsei Kure, representative director, president and chief executive of Renesas, commented:

Renesas is accelerating its focus of resources in automotive, industrial, infrastructure, and the rapidly growing IoT segments to aggressively grow its global business and maintain its position as a leading provider. Intersil’s extensive portfolio of analog and power devices as well as its strength in the automotive, industrial, and broad-based segments complement many of Renesas’ initiatives in these areas. We believe that this compelling and complementary combination will bring significant synergies and cross selling opportunities as well as a system solution proposition which will pave the way for Renesas to strengthen its position as a leader in the global semiconductor market while delivering value to its customers with a unique product offering.

Excluding Tuesday’s move, Intersil has outperformed the broad markets, with the stock up nearly 60% year to date. Over the past 52 weeks, the stock has nearly doubled up 95%.

Intersil shares hit a new 52-week high of $21.85 Tuesday morning. The consensus analyst price target is $16.78, and the 52-week low is $10.67.