logo
Plus   Neg
Share
Email

Dialog Semiconductor Reaches Technology Licensing Agreement With Apple

Dialog Semiconductor plc (DLGNF.PK,DLGS) said Thursday that it reached an agreement with Apple Inc. (AAPL) to license certain of its power management technologies, transfer certain of its assets and over 300 employees to Apple to support chip research and development. Apple will pay $300 million in cash for the transaction and prepay $300 million for Dialog products to be delivered over the next three years. Dialog also plans to initiate a share buyback program of up to 10% of its outstanding shares following its third-quarter trading update.

Dialog Semiconductor said, "The employees who are being transferred have worked closely with Apple for many years, and this transition will foster deeper collaboration between the two companies."

Dialog also noted that it has been awarded a broad range of new contracts from Apple for the development and supply of power management, audio subsystem, charging and other mixed-signal integrated circuits. Revenue from the new contracts is expected to be realized starting in 2019 and accelerating in 2020 and 2021.

Dialog's power conversion, connectivity, configurable mixed-signal, audio and charging ICs address markets that are expected to grow at a 13% CAGR to reach $13 billion by 2021. Dialog will continue to deliver PMICs to other customers globally.

Apple will employ more than 300 Dialog engineers and other employees already supporting Apple chip development, representing approximately 16% of Dialog's total workforce. Apple will assume certain Dialog facilities in Livorno (Italy), Swindon (U.K.), Nabern and Neuaubing (Germany).

Dialog noted that its 2018 revenue will not be affected by this agreement, and the company will continue shipments of current products in production to Apple. The proceeds from the transaction further strengthen Dialog's balance sheet, enabling the company to accelerate investments - including M&A - in growth opportunities across IoT, Mobile, Automotive and Computing & Storage markets. Dialog also intends to initiate a share buyback program of up to 10% of its outstanding shares following its third-quarter trading update.

The transaction is expected to be completed in the first half of 2019, subject to applicable regulatory approvals and other customary closing conditions.

For comments and feedback contact: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Car rental company Hertz Global Holdings Inc. and biometric technology company CLEAR announced the introduction of biometric ID technology for car rentals. "Hertz Fast Lane powered by CLEAR" is a new service that allows travellers at airports to use fingerprint scanners and facial recognition technology to collect a rental car, instead of showing a physical ID. The recent massive cyber-attack on hotel chain Marriott International Inc. was part of a Chinese intelligence-gathering effort, the New York Times reported Tuesday, citing two people briefed on the investigation. The data breach affected about 500 million guests of the hotel chain. According to the NYT report, the hackers are suspected of working on behalf of the Ministry of State Security. Verizon Communications Inc. said that about 10,400 employees, or nearly 7 percent of its workforce, have accepted the company's voluntary buyout offer that was first announced in September. The voluntary buyout program is part of Verizon's efforts to cut costs and trim its workforce as it focuses on optimizing growth opportunities in 5G network service.
Follow RTT