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Dialog to expand its IoT portfolio with Creative Chips
Posted on Monday, 07 October 2019 13:05
Dialog Semiconductor has agreed to buy Germany-based fabless semiconductor company Creative Chips for USD 103.00 million.
The purchase price includes around USD 80.00 million in cash and an earnout of up to USD 23.00 million based on revenue targets being achieved between 2020 and 2021.
Dialog will fund the transaction, which is due to complete in the fourth quarter of 2019, through its balance sheet.
Bingen-headquartered Creative Chips supplies integrated circuits (ICs) products to the industrial Internet-of-Things (IoT) market.
The group’s offerings include sensor ICs, BUS interface circuits and controller application-specific ICs used within the industrial automation, automotive and consumer goods industries, among others.
Creative Chips is also developing a range of IO-link ICs products to help create greater connectivity for the Industry 4.0 market.
The target is expected to post revenue of around USD 20.00 million in 2019, with projected turnover growth of over 25.0 per cent within the next few years.
Jala Bagherli, chief executive of Dialog, said: “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.”
The addition of the target’s engineering team will also help speed up the global sales of the buyer’s existing wireless low product connectivity, mixed-signal and power management ICs offerings.
Furthermore, the acquisition will broaden Dialog’s customer base and allow the company to strengthen its position in the Industry 4.0 market.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 1,934 deals targeting semiconductor and other electric component manufacturers announced worldwide since the start of 2019.
Infineon Technologies agreed to buy US-based Cypress Semiconductor for USD 10.08 billion, in the most valuable of these to date.
Other companies targeted within the last nine months include NVIDIA, Dela Electronics and JA Solar Holdings.
© Zephus Ltd