London, United Kingdom - October 05, 2017 – Dialog Semiconductor plc (XETRA:DLG), a provider of highly integrated power management, AC/DC power conversion, charging, and low power connectivity technology, announced today that it has signed a definitive agreement to acquire privately-held Silego Technology Inc., the leading provider of Configurable Mixed-signal ICs (CMICs), for a cash payment of $276 million with additional contingent consideration of up to $30.4 million.
Headquartered in Santa Clara, California with approximately 235 employees worldwide, Silego is the pioneer and market leader in CMICs that integrate multiple analog, logic, and discrete component functionality into a single chip. Silego's intuitive CMIC software interface allows customers to easily configure these functions and prototype a custom IC in hours with much greater design flexibility. This technology enables OEMs to reduce board space, simplify their supply chain, and accelerate time-to-market. Silego's solutions are increasingly being used across a broad range of new applications, with over 3 billion units sold.
The acquisition of Silego will complement Dialog's market leadership by increasing Dialog's content at existing customers and expanding its customer base. The breadth of the new product portfolio will strengthen Dialog's presence in markets including IoT, computing and automotive.
Silego anticipates achieving over $80 million of revenue in 2017 and double-digit growth in 2018. The transaction is expected to be accretive to Dialog's underlying EPS for full calendar year 2018 and accretive to Dialog's gross margin. The transaction is projected to close in the fourth calendar quarter of 2017, subject to customary closing conditions. Dialog expects to fund the transaction from existing cash.
“The acquisition of Silego brings a highly complementary technology to Dialog. What Silego has developed is truly unique - a mixed-signal platform which customers can configure to their design requirements on the fly, drastically reducing the time to bring their products to market,' said Jalal Bagherli, CEO of Dialog. 'With global scale and customer access, Dialog is the right platform to further accelerate industry wide CMIC adoption. Furthermore, we gain an exceptional group of talented people that will fit well with Dialog's culture. Together, we will significantly increase the value we can bring to our customers by creating a better-positioned and more-diversified mixed signal offering.”
“We believe Dialog will be a great environment for the Silego team to grow as part of a much larger company serving global customers,” stated John Teegen, CEO of Silego Technology. “Our proprietary and configurable approach has allowed Silego to establish leadership while creating a new market. By leveraging Dialog's technology and capabilities, I am confident we can further drive adoption of CMICs.”
Barclays is acting as the financial advisor to Dialog, and Hogan Lovells is acting as its legal counsel for the transaction.
About Dialog Semiconductor
Dialog Semiconductor is a leading provider of integrated circuits (ICs) that power mobile devices and the Internet of Things. Dialog solutions are integral to some of today's leading mobile devices and the enabling element for increasing performance and productivity on the go. From making smartphones more power efficient and shortening charging times, enabling home appliances to be controlled from anywhere, to connecting the next generation of wearable devices, Dialog's decades of experience and world-class innovation help manufacturers get to what's next.
Dialog operates a fabless business model and is a socially responsible employer pursuing many programs to benefit the employees, community, other stakeholders and the environment we operate in. Dialog Semiconductor plc is headquartered in London with a global sales, R&D and marketing organization. In 2016, it had approximately $1.198 billion in revenue and was one of the fastest growing European public semiconductor companies. It currently has approximately 1,800 employees worldwide. The company is listed on the Frankfurt (FWB: DLG) stock exchange (Regulated Market, Prime Standard, ISIN GB0059822006) and is a member of the German TecDaxindex. For more information, visit www.dialog-semiconductor.com.
About Silego Technology
Silego, headquartered in Santa Clara, California, is a fabless semiconductor company that designs and sells highly configurable power, logic and timing mixed-signal ICs. Silego chips offer the combination of mixed signal functionality and programmable logic in small footprints and at a low cost. Its analog mixed-signal IC design platform presents a new paradigm for designers by accelerating customers' time to market, leading to deep, long-standing customer engagement. The company has operations in Taiwan, and additional design and technology centers in China, Korea and Ukraine. For more information, visit www.silego.com.
Forward-Looking Statements are omitted