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Dialog To Buy Silicon Motion's Mobile Communications Business - Quick Facts

Dialog Semiconductor plc (DLGS,DLGNF.PK) said Thursday that it has agreed to acquire Silicon Motion Technology Corp.'s (SIMO) Mobile Communications product line, branded as FCI, for $45 million.

FCI is the global leader in Mobile TV SoCs in T-DMB and ISDB-T, with RF tuner-demodulator SoC solutions for smartphones, tablets and automotive Portable Navigation Devices or PNDs.

The acquired group is primarily located near Seoul, South Korea. It shipped over 65 million SoCs in 2018 and can be found in many leading smartphone models.

Dialog said it will fund the $45 million purchase price in an all-cash transaction from its balance sheet. The board of directors of both companies have given their approval and the transaction is expected to complete during 2019, subject to regulatory approval.

Dialog noted that the acquisition provides it with a rich portfolio of complementary connectivity-based products that includes Ultra-Low-Power Wi-Fi System-on-Chip or SoCs and Modules, Mobile TV SoCs and Mobile Communication transceiver Integrated Circuits or ICs.

"Ultra-Low-Power Wi-Fi is a strong strategic fit for Dialog with the opportunity to combine Wi-Fi and Bluetooth low energy chips and modules selling into our complementary IoT, consumer and automotive markets," said Dialog CEO Jalal Bagherli.

Silicon Motion's Mobile Communications reported revenues of about $30 million in 2018 from all its current product lines, with sales primarily generated from its Mobile TV SoCs. The company's ultra-low power performance of the new Wi-Fi product line has achieved full Wi-Fi certification and passed all interoperability tests with an extensive range of routers.

Dialog noted that in addition to the current product lines, the acquisition also brings to the company a broad range of new technologies and engineering capabilities with extensive design expertise in RF wireless communications for cellular 4G and 5G, Narrowband IoT or NB-IoTtransceiver, power amplifiers and deep sub-micron chip design.

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