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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