Reading, UK-based Dialog Semiconductor is now officially part of Apple, after a $600 million acquisition closed today, ahead of schedule.
The deal, announced in October 2018, will see Dialog receive $300 million in cash, and $300 million for products to be delivered over the next three years.
More than 300 Dialog professionals will also officially become Apple employees, joining the company’s Hardware Technologies team.
“Dialog has also been awarded a broad range of new contracts from Apple for the development and supply of other mixed-signal integrated circuits” the company, which has supplied parts for Apple since the early iPhones, said today.
Apple will also assume control of Dialog facilities in Livorno in Italy, Nabern and Neuaubing in Germany, and Swindon in the UK
Dialog: “Next Phase of Growth”
Dialog CEO Jalal Bagherli said: “This transaction accelerates Dialog’s transformation to a market-leading provider of differentiated custom and configurable mixed-signal integrated circuits (ICs) across a broader customer base.”
“We are moving forward to the next phase of growth with a strategic focus on fast-growing segments of the IoT, Mobile, Automotive and Computing & Storage markets. This agreement reaffirms our long-standing relationship with Apple and gives me great confidence in the future of our business.”
Dialog generated revenues of $1.44 billion in 2018, up seven percent year-on-year despite a slowdown at Apple caused by a sharp decline in Chinese demand for iPhones.
In its annual report, the company pointed to “increasing penetration of technology and connected devices, despite some softness in consumer demand in the high-end of the smartphone market” for the growth. In 2018, its revenue outside Mobile Systems grew 33 percent and operating profit almost tripled
“Apple is excited to welcome more than 300 talented engineers and other employees from Dialog who have extensive chip development expertise and deep knowledge of our products,” said Johny Srouji, Apple’s senior VP of Hardware Technologies.
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