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
Philip Morris International Inc. has launched a new advertising campaign in the UK that encourages people to stop smoking. However, the tobacco giant has been accused by anti-smoking campaigners of hypocrisy and cynicism for the move. The maker of Marlboro cigarettes announced earlier in 2018 that it intends to eventually stop selling cigarettes in the UK. Kimberly-Clark Corp. (KMB) reported third-quarter adjusted earnings per share of $1.71, an increase of 7 percent compared to net income per share of $1.60, prior year. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.64 for the quarter. Analysts'... South Korean IT services company Samsung SDS has joined with Dutch bank ABN AMRO and Port of Rotterdam Authority for a trial project that applies blockchain to shipping and logistics business. Samsung SDS, the IT arm of South Korean Conglomerate Samsung, and ABN AMRO will connect their blockchain platforms Nexledger and Corda, respectively, with the pilot.
Follow RTT