Dialog Semiconductor to acquire Adesto Technologies

Dialog will acquire Adesto for USD 12.55 per share in cash, or for approximately USD 500 million enterprise value. Dialog expects annual cost synergies of approximately USD 20 million within the first calendar year of close across the combined company. Dialog also anticipates considerable additional revenue synergies given the complementary nature of the product portfolios and technology. Adesto expects to report FY 2019 revenue of approximately USD 118 million and continued revenue growth is anticipated over the next few years. The transaction is subject to certain regulatory approvals and customary closing conditions, including the approval of Adesto's stockholders, and is expected to close in the third quarter of 2020. Headquartered in Santa Clara, California, Adesto has approximately 270 employees and an established portfolio of industrial solutions for smart building automation that complements Dialog’s manufacturing automation products. “This acquisition substantially enhances our position in the Industrial IoT market,” says Jalal Bagherli, CEO of Dialog, in a press release. “Adesto’s established strength in connectivity solutions and highly optimized products for building and industrial automation perfectly complements and adds scale to our Industrial IoT portfolio from the recently acquired Creative Chips. Adesto’s deep customer relationships, comprehensive system expertise, and proprietary technology will deliver enhanced value for Dialog customers.” “Together with Dialog, we are positioned to create unique Industrial IoT solutions through the integration of our best-in-class technologies for today’s increasingly connected world,” adds Adesto’s CEO, Narbeh Derhacobian. “We are extremely pleased to join Dialog to bring more value to our combined customer base.”