FONT-SIZE Plus   Neg

Dialog Semiconductor Agrees To Buy IWatt For $310 Mln Plus Contingent Payments

Dialog Semiconductor Plc (DLGNF.PK,DLGS), a German provider of power management, audio and short-range wireless technologies, Tuesday announced an agreement to acquire Silicon Valley, California-based iWatt Inc. for about $310 million in cash, plus additional contingent consideration of up to $35 million based on achieving some revenue targets.

iWatt is a provider of digital power management integrated circuits and employs about 180 people. The deal adds two high growth product families - AC/DC charger adaptor ICs and a broad range of LED Solid State Lighting ICs - to Dialog's product portfolio.

The deal also adds new Tier-1 customers as well as a portfolio of more than 110 patents. Addition of iWatt's complementary AC/DC digital power management technology is expected to enhance Dialog's position in power management for tablets and smartphones.

The boards of directors of both companies have approved the acquisition. In financial year 2012, iWatt generated revenue of $74 million, up 46 percent over 2011.

The transaction on an underlying basis is expected to be accretive in the first quarter after closing and by the end of 2014 on an IFRS basis. The deal is expected to close by the end of July.

The acquisition is being funded from Dialog's existing cash resources and additional debt facilities of $125 million.

Dialog's CEO Jalal Bagherli said, 'We see the acquisition as highly complementary to our existing PMIC business enabling Dialog to address adjacent emerging power management segments, including cutting-edge AC/DC solutions for next generation fast portable chargers as well as ICs for LED solid state lighting.''

The stock closed up 1.8 percent on Frankfurt's Xetra on Monday at 9.79 euros.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Apple confirmed that it has bought face animation software firm Faceshift, although it was tight lipped about how it intends to use the new addition. The move is speculated as a bid to expand into virtual reality. Environment ministry of South Korea Thursday ordered Volkswagen Korea to recall 125,522 diesel vehicles on determining actual emissions of nitrogen oxides. The ministry has asked the German automobile maker to pay a fine of 14.1 billion Won or $12.31 million. The company has to submit a recall plan by January 6, 2016. The U.S. Food and Drug Administration has alerted health care professionals and patients of a voluntary recall of compounded multivitamin capsules containing high amounts of Vitamin D3 (Cholecalciferol), distributed nationwide by Glades Drugs in Pahokee, Florida. FDA has received reports of several...
comments powered by Disqus
Trade DLGS now with 
Follow RTT