- The acquisition provides Dialog with a rich portfolio of core IC products and a broad library of analog, digital and RF technologies
- The acquisition will be funded from Dialog’s balance sheet for a cash payment of approximately $80 million
- Creative Chips expects to generate revenues of approximately $20 million in the calendar year 2019 with revenue growth of over 25% per annum
- The transaction is expected to close in the fourth quarter of 2019
Dialog Semiconductor plc has announced that it has signed a definitive agreement to acquire Creative Chips GmbH, a supplier of Integrated Circuits (ICs) to the Industrial Internet of Things (IIoT) market.
About the acquisition
The acquisition provides Dialog with a rich portfolio of core IC products and a broad library of analog, digital and RF technologies. The acquisition includes the addition of an experienced engineering team with skills when combined with Dialog’s worldwide engineering, marketing, and sales teams, which will accelerate IC sales on a global basis.
As per the company’s statement, the acquisition will be funded from Dialog’s balance sheet for a cash payment of approximately $80 million, with an additional contingent consideration of up to $23 million, based on future revenue targets in 2020 and 2021.
About Creative Chips
Creative Chips is a fabless semiconductor company with a growing IC business supplying a portfolio of industrial Ethernet to top-tier, blue-chip manufacturers of industrial and building automation systems. The company expects to generate revenues of approximately $20 million in the calendar year 2019 with revenue growth of over 25% per annum.
“The acquisition of Creative Chips is instrumental for Dialog, giving it a strong foothold in the Industrial IoT market, while still highly complementary to Dialog’s current mixed-signal business,” said Jalal Bagherli, CEO of Dialog.
He further added, “The addition of Creative Chips and its team of highly experienced and engineers will help to further diversify Dialog’s product revenues, customer base, and end markets by extending our reach in the industrial sector in addition to strengthening our automotive offering.”
As per the press release, the transaction is expected to close in the fourth quarter of 2019.
