Renesas Electronics Corp and Dialog Semiconductor said on Monday they had agreed for the Japanese chipmaker to buy the Frankfurt-listed chip designer for 4.9 billion euros ($5.90 billion) in cash.

Renesas, one of the world’s biggest auto chip makers, has offered 67.50 euros a share for the Apple Inc supplier, representing a 20% premium to Friday’s closing price and a 52% premium to a weighted three-month average.

Dialog said in a statement that the agreed deal represented a “compelling opportunity” for its shareholders. Its board of directors would unanimously recommend the offer.

Dialog shares were 21% higher in early Frankfurt trading at 68 euros, a slight premium to the price of the agreed deal.