Renesas nears $3 billion acquisition of Intersil, shares soar

Shares of Intersil (ISIL) spiked more than 19 percent on Monday, as the chip maker neared an expected $3 billion acquisition with Japan's Renesas Electronics (Tokyo Stock Exchange: 6723.T-JP).

Reuters reported that a source familiar with the deal confirmed the companies are in the final stages of negotiations. Renesas chief financial officer Hidetoshi Shibata said the company began allocating billions of dollars last year to defending its industry lead against growing competition.

The deal is expected to close by the end of this month.

So far this year, Intersil shares have gained more than 46 percent.

ISIL YTD