Apple is buying a portion of Dialog Semiconductor for $300m, a manufacturer of power management ICs (PMICs) taking control of its Swindon site as well as offices in Livorno, Italy and Nabern (where Daimler also have a research facility) and Neuaubing in Germany.
For this price, Apple will also acquire Dialog's patents and also take on its chip engineering workforce. Apple will also prepay $300m to Dialog for products to be delivered over the next 3 years, creating an outlay of $600m for Apple.
Apple's hardware chief Johny Srouji, who reports to CEO Tim Cook, praised Dialog's "deep expertise in chip development" and alluded to their engineers having a long track record supporting Apple from the early days of the iPhone.
Johny joined Apple in 2008 to lead development on the A4, the first Apple-designed System on a Chip, having previously held senior positions at Intel and IBM. He has Bachelors and Masters from Technion which has close links with Intel.
The announcement caused Dialog's shares to surge 30% given the certainty the deal places over its future. The uncertainty (which at one point led to a 20% drop in the share price) was triggered by both Dialog's dependence on Apple (from whom it gets 75% of its revenue), and Apple's decision to drop Imagination Technologies in favour of developing its GPUs in-house, creating anxiety amongst suppliers (Imagination threatened legal action against Apple before being bought out by Canyon Bridge).
Dr Jalal Bagherli, who joined Dialog as CEO in 2005 (and has also worked as CEO of Alphamosaic, a Cambridge startup building video processing chips for mobile, sold to Broadcom in 2004 for $123m), and has a PhD in Electronics from Kent University, said the deal was "in the best interests of employees and shareholders".
Dialog's financial advisors were Qatalyst Partners (the advisory firm led by George Boutros and Frank Quatrrone) and legal counsel Linklaters.
Dialog's competitors in the Smartphone PMIC market are Qualcomm (with about 40% market share), TI (20% market share), Maxim and formerly ST-Ericsson.
For this price, Apple will also acquire Dialog's patents and also take on its chip engineering workforce. Apple will also prepay $300m to Dialog for products to be delivered over the next 3 years, creating an outlay of $600m for Apple.
Apple's hardware chief Johny Srouji, who reports to CEO Tim Cook, praised Dialog's "deep expertise in chip development" and alluded to their engineers having a long track record supporting Apple from the early days of the iPhone.
Johny joined Apple in 2008 to lead development on the A4, the first Apple-designed System on a Chip, having previously held senior positions at Intel and IBM. He has Bachelors and Masters from Technion which has close links with Intel.
The announcement caused Dialog's shares to surge 30% given the certainty the deal places over its future. The uncertainty (which at one point led to a 20% drop in the share price) was triggered by both Dialog's dependence on Apple (from whom it gets 75% of its revenue), and Apple's decision to drop Imagination Technologies in favour of developing its GPUs in-house, creating anxiety amongst suppliers (Imagination threatened legal action against Apple before being bought out by Canyon Bridge).
Dr Jalal Bagherli, who joined Dialog as CEO in 2005 (and has also worked as CEO of Alphamosaic, a Cambridge startup building video processing chips for mobile, sold to Broadcom in 2004 for $123m), and has a PhD in Electronics from Kent University, said the deal was "in the best interests of employees and shareholders".
Dialog's financial advisors were Qatalyst Partners (the advisory firm led by George Boutros and Frank Quatrrone) and legal counsel Linklaters.
Dialog's competitors in the Smartphone PMIC market are Qualcomm (with about 40% market share), TI (20% market share), Maxim and formerly ST-Ericsson.
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