Apple supplier Dialog Semiconductor agreed to a €4.9 billion takeover by Japan’s Renesas Electronics, in a deal to expand its chip portfolio and beef up its presence in IoT, wireless solutions and industrial infrastructure.
In a statement, Renesas said it had agreed terms on an all-cash acquisition of UK-based Dialog Semiconductor, for €67.50 per share, a 20 per cent premium on its closing share price on Friday (5 February).
The deal has been accepted by both board’s of directors, but still requires regulatory approvals and approval from Dialog shareholders, and is expected to complete at the end of 2021.
In addition to Apple, for which it provides power management technologies and other solutions, Dialog also counts Samsung and Xiaomi as customers. The company specialises in developing power management technologies for smartphones and IoT devices, in addition to wireless charging and mobile chips.
Renesas explained the proposed deal would help it to build more comprehensive solutions to serve “high-growth segments of the IoT, industrial and automotive markets”, in addition to security and safety applications.
“The transaction we announced today represents our next important step in catapulting Renesas’ growth plan to achieve substantial strategic and financial benefits, following our previous acquisitions,” said Hidetoshi Shibata, president and CEO of Renesas.
Indeed, Renesas has invested around $10 billion over the past four years, as it looks to broaden its portfolio into consumer devices. Acquisitions include a deal in 2019 to acquire Integrated Device Technology and US chipmaker Intersil in 2017.
The deal will likely be subject to intense regulatory scrutiny, particularly in light of Nvidia’s proposed $40 billion takeover of UK-based Arm, which is facing an in-depth investigation in the country later this year.