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© Dialog Semiconductor Business | October 11, 2018

Apple buys part of Dialog’s business for $600 million

Dialog Semiconductor announces an agreement with Apple to license certain of its power management technologies, transfer certain of its assets and over 300 employees to the Cupertino company to support chip research and development.
According to the agreement Apple will pay USD 300 million in cash for the transaction and prepay USD 300 million for Dialog products to be delivered over the next three years. The employees who are being transferred have already worked closely with Apple for many years, this move is expected to foster a deeper collaboration between the two companies.

Dialog says that has also been awarded a broad range of new contracts from Apple for the development and supply of power management, audio subsystem, charging and other mixed-signal integrated circuits. Revenues from the new contracts is expected to be realized starting in 2019 and accelerating in 2020 and 2021.

“This transaction reaffirms our long-standing relationship with Apple, and demonstrates the value of the strong business and technologies we have built at Dialog. Going forward, we will have a clear strategic focus, building on our custom and configurable mixed-signal IC expertise and worldclass power-efficient design. Our execution track record, deep customer relationships, and talented employees give us great confidence in our future growth prospects,” says Jalal Bagherli, CEO of Dialog, in the release.

Apple will employ more than 300 Dialog engineers and other employees already supporting Apple chip development, representing approximately 16% of Dialog’s total workforce. This means that Apple will assume certain Dialog facilities in Livorno (Italy), Swindon (U.K.), Nabern and Neuaubing (Germany).

“We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives,” Bagherli adds.

“Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple,” says Johny Srouji, Apple’s senior vice president of Hardware Technologies, in the release. “Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them.”

The transaction is expected to be completed in the first half of 2019.

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October 15 2018 11:56 pm V11.6.0-1