Renesas Completes Acquisition of Reality AI

Rhea-AI Summary

Renesas Electronics Corporation (TSE:6723) completed its acquisition of Reality Analytics, Inc. on July 19, 2022, following necessary approvals. This strategic acquisition aims to enhance Renesas' AI and Tiny Machine Learning capabilities, allowing for better non-visual sensing solutions in various industries, including automotive and industrial sectors. Reality AI's technology integrated with Renesas' MCU/MPU product lines is expected to accelerate endpoint intelligence delivery in IIoT, consumer, and automotive applications, providing a competitive edge in the growing AIoT market.

Positive

• Acquisition of Reality AI enhances Renesas' embedded AI and TinyML capabilities.
• Integration expected to provide advanced non-visual sensing solutions across multiple sectors.
• Expansion of AI tool suite and software offerings, improving product development for customers.
• Strengthened global talent network with Reality AI's team of experts.

Negative

• None.

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE:6723), a premier supplier of advanced semiconductor solutions, today announced the completion of the acquisition of Reality Analytics, Inc. (Reality AI), a leading provider of embedded AI solutions, as of July 19, 2022, following Reality AI shareholders’ and required regulatory approval.

Headquartered in Columbia, Maryland, U.S., Reality AI offers a wide range of embedded AI and Tiny Machine Learning (TinyML) solutions for advanced non-visual sensing in automotive, industrial and commercial products. Combining Reality AI’s best-in-class AI inference technologies with Renesas’ extensive MCU and MPU product portfolios will enable seamless implementation of machine learning and signal processing. The acquisition will allow Renesas to expand its tool suite and software offerings for AI applications and increase its in-house capability to provide highly optimized endpoint solutions that combine both hardware and software.

Renesas will continue to accelerate the delivery of end-point intelligence in a vast array of IIoT (Industrial IoT), consumer and automotive applications. Renesas’ MCU/MPU platforms with machine-learning algorithms will significantly enhance system development, providing customers with unmatched developer experience to make their applications AIoT (Artificial Intelligence of Things) ready and help them get to market faster.

With the completion of the acquisition, Reality AI has become an indirect wholly owned subsidiary of Renesas. Renesas now possesses Reality AI's team of AI experts and an AIoT R&D center-of-excellence in Maryland, U.S. As a leading provider of AIoT solutions, Renesas will continue to meet the needs of customers seeking to implement AI solutions with the expanded global talent network of software engineers.

(Remarks) All names of products or services mentioned in this press release are trademarks or registered trademarks of their respective owners.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, YouTube, and Instagram.

Cautionary note regarding forward-looking statements

This announcement may contain certain statements that are, or may be deemed to be, forward-looking statements with respect to the financial condition, results of operations and business of Renesas and/or Reality AI and/or the combined group following completion of the Acquisition and certain plans and objectives of Renesas with respect thereto. These forward-looking statements can be identified by the fact that they do not relate to historical or current facts. Forward-looking statements also often use words such as ‘anticipate,’ ‘target,’ ‘continue,’ ‘estimate,’ ‘expect,’ ‘forecast,’ ‘intend,’ ‘may,’ ‘plan,’ ‘goal,’ ‘believe,’ ‘hope,’ ‘aims,’ ‘continue,’ ‘could,’ ‘project,’ ‘should,’ ‘will’ or other words of similar meaning. These statements are based on assumptions and assessments made by Renesas and/or Reality AI (as applicable) in light of their experience and perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct and you are therefore cautioned not to place undue reliance on these forward-looking statements which speak only as at the date of this announcement.

Forward-looking statements are not guarantees of future performance. Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors could cause actual results to differ materially from those projected or implied in any forward-looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this announcement. Neither Renesas nor Reality AI undertakes any obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by applicable law.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business and competitive environments, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. If any one or more of these risks or uncertainties materialize or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors.

No member of the Renesas group or the Reality AI group nor any of their respective associates, directors, officers, employers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur.

Except as expressly provided in this announcement, no forward-looking or other statements have been reviewed by the auditors of the Renesas group or the Reality AI group. All subsequent oral or written forward-looking statements attributable to any member of the Renesas group or the Reality AI group, or any of their respective associates, directors, officers, employers or advisers, are expressly qualified in their entirety by the cautionary statement above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220719006151/en/

Media Contacts:

Renesas Electronics Corporation

Kyoko Okamoto

+81 3-6773-3001

pr@renesas.com

Investor Relations Contacts:

Renesas Electronics Corporation

Yuuki Oka

+81 3-6773-3002

ir@renesas.com

Source: Renesas Electronics Corporation

FAQ

What is the significance of Renesas acquiring Reality AI?

The acquisition enhances Renesas' capabilities in embedded AI and TinyML, crucial for advancing applications in the automotive and industrial sectors.

When was the acquisition of Reality AI by Renesas completed?

The acquisition was completed on July 19, 2022.

How does the acquisition impact Renesas' product offerings?

It expands Renesas' tool suite and software offerings for AI applications, enabling faster development of AIoT solutions.

What are the expected benefits of the acquisition for customers?

Customers will benefit from enhanced system development capabilities and a better developer experience for AIoT-ready applications.