Japan's TDK agrees to buy US chip maker InvenSense for $1.3 billion

Japanese electronic parts maker TDK Corp said it had agreed to buy InvenSense Inc, a US chip maker that produces motion sensors for Apple Inc and Samsung Electronics Co, for $1.33 billion.

In a statement on Wednesday, TDK said it will pay $13 per share to buy all of InvenSense, representing a 19.9% premium to the US company's closing price on Tuesday.

Earlier this month, Reuters reported TDK was in talks to buy InvenSense.

The deal would allow TDK, already a major smartphone components supplier, to boost its sensor technology offerings. InvenSense designs gyroscopes which help smartphones calculate motion, enabling augmented reality games such as Pokemon Go.

BofA Merrill Lynch was the financial adviser for TDK, while Qatalyst Partners advised InvenSense.