Dialog Semiconductor

The British semiconductor company Dialog Semiconductor specializes in production of chips for power management. The biggest customer — Apple corporation which uses Dialog chips in iPhone.

History

2021: Renesas purchased Dialog for 4.9 billion euros

At the beginning of February, 2021 the Japanese producer of the microchips Renesas reached the purchase agreement of the British company Dialog. The cost of the transaction is 4.9 billion euros.

According to Bloomberg with reference to terms of agreement, Renesas will redeem shares of Dialog at the price of 67.5 euros apiece that is 20% higher than their cost on closing of biddings on February 5, 2021. The Japanese producer intends to finance the transaction at the expense of bank loans for the amount of 735.4 billion yens ($7 billion). Renesas is also going to organize an additional issue, the company can finance in parts or in full purchase of Dialog at the expense of the funds raised from sale of new stocks depending on the size and time of carrying out an additional issue.

Renesas purchased Dialog for 4.9 billion euros

The transaction, according to a source, was approved by Board of Directors of both companies. Closing of the transaction is expected until the end of 2021. Dialog also conducted negotiations with other potential buyers, including STMicroelectronics.

According to the CEO of Dialog Jalal Bagerli, there were several concerned parties in Dialog acquisition. However, the Renesas company was selected for its culture, reputation, technologies and market coverage.

Within several years we successfully implemented the strategy of diversification which is focused on rapid growth of Dialog, - Jalal Bagerli added. We created a strong basis for the high-performance analog and energy efficient mixed signals, expanded our product portfolio and applied our technologies in the markets, including a 5G, wearable devices, automotive industry, the smart house, "the connected medicine" and industrial Internet of Things. Our platform in combination with the leading solution portfolio of Renesas for the built-in computer systems creates still great opportunities for growth in today's world which becomes more and more interconnected.[1][2]

2018: Dialog sold a part of business of Apple for $600 million

On October 11, 2018 Apple announced acquisition of a part of business of Dialog Semiconductor for $600 million. The transaction expands semiconductor activity of iPhone producer in Europe.

To media repeatedly there went information on development of Apple of own chips for power management intended to iPhone. Assets of Dialog should help corporation with work on such products.

Under the terms of the agreement, Apple takes out from Dialog patents, offices in Britain, Italy and Germany and also a team of 300 engineers, many of which worked on chips for iPhone. Apple will pay $300 million for all this, and $300 million more will go for purchases of products of the chipmaker within three years.

Apple will pay $600 million for a share in the developer of Dialog Semiconductor chips

As notes the TechCrunch edition, this acquisition from the point of view of the number of the passing employees is the largest for Apple which will receive 16% of the staff of Dialog. All these specialists will remain to work in Europe and will directly submit to the senior vice president for technologies of the hardware of Apple Johny Srouji who supervises development of chips. Close the transaction which needs approval by regulators, it is planned in the first half of 2019.

Dialog emphasized that, despite the transaction with Apple, chips will be delivered further to other clients, and special attention will be paid to clients in the markets of automotive industry and Internet of Things.

This transaction symbolizes our old relations with Apple and shows the value of strong business and technologies which we created in Dialog — the CEO of the British company Jalal Bagherli said.

Apple notes that, having received assets of Dialog, the company expects to carry out "controlled, smooth" transformation of business as it looks for new opportunities in the field of Internet of Things long ago.

By October, 2018 Apple has development centers of chips in Germany and Britain. After closing of the transaction of Dialog the Californian giant will have four more similar objects.^[3]

Notes