Dialog completes Apple deal with transfer of 300 staff
The deal under which European fabless chip company Dialog would transfer 16 percent of its workforce to Apple, while receiving license fees and pre-payment for three years of products, was announced in October 2018 (see Apple to acquire PMIC capabilities, staff from Dialog).
Under the terms of the deal Dialog will receive $600 million in total, consisting of a payment from Apple of $300 million in cash for the transaction and pre-payment of $300 million for Dialog products to be delivered over the next three years.
Dialog said that at the same time it has been awarded a broad range of contracts from Apple for the development and supply of other mixed-signal integrated circuits.
Previously Dialog had been highly dependent on sales of PMICs to Apple while Apple was looking to take the development of PMICs in-house. The outcome reflects a considerably better transition for Dialog than that which befell GPU licensor Imagination Technologies (see Analysis: Dialog finds a better way out from under Apple).
“This transaction accelerates Dialog’s transformation to a market-leading provider of differentiated custom and configurable mixed-signal integrated circuits (ICs) across a broader customer base. We are moving forward to the next phase of growth with a strategic focus on fast-growing segments of the IoT, mobile, automotive, computing and storage markets,” said Jalal Bagherli, CEO of Dialog Semiconductor, in a statement. “This agreement reaffirms our long-standing relationship with Apple and gives me great confidence in the future of our business.”
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