SiTime Corporation's stock soared 9.68% in post-market trading on Wednesday, following the release of its quarterly financial results and a major strategic announcement.

The precision timing company reported quarterly adjusted earnings of $1.53 per share, significantly beating analyst estimates, while revenue also exceeded expectations with a 66% year-over-year increase, driven by strong growth in its Communications, Enterprise, and Datacenter business segment.

Concurrently, SiTime announced a definitive agreement to acquire Renesas Electronics' timing business for $1.5 billion in cash and stock. The acquired business is expected to generate approximately $300 million in revenue within 12 months after closing, with a significant portion coming from high-growth AI datacenter and communications markets.