UK-based Dialog Semiconductor has agreed to acquire US chip maker Atmel for approximately $4.6bn.
Atmel designs and manufactures microcontrollers, capacitive touch solutions, advanced logic, mixed-signal, non-volatile memory and radio frequency parts.
Atmel shareholders will receive $4.65 in cash and 0.112 of a Dialog American depository share for each stock. The offer values Atmel at $10.42 a share.
The transaction creates a new force in power management and embedded processing solutions, supporting mobile power, Internet of Things (IoT) and automotive customers.
It combines the companies presence in power management, microcontrollers, connectivity and security for delivering IoT platforms. Dialog will expand its customer base by using Atmel’s sales channels.
The transaction, which is expected to close in the first quarter of next year, will increase Dialog’s earnings in 2017 and result in annual cost savings of $150m within two years.
Dialog Semiconductor CEO Jalal Bagherli said: "By bringing together our technologies, world-class talent and broad distribution channels we will create a new, powerful force in the semiconductor space.
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"Our new, enlarged company will be a diversified, high-growth market leader in Mobile Power, IoT and Automotive.
"We firmly believe that by combining Power Management, Microcontrollers, Connectivity and Security technologies, we will create a strong platform for innovation and growth in the large and attractive market segments we serve."
Dialog offers integrated standard and custom mixed-signal integrated circuits for smartphone, tablet, IoT, and other applications. The company’s chips are used in Apple’s iPhone and iPad.
