Apple Finalized A Technology Licensing Agreement With Dialog Semiconductor, Worth $600 Million

Apple Finalized A Technology Licensing Agreement With Dialog Semiconductor, Worth $600 Million

Apple has finalized an agreement with Dialog Semiconductor to license certain of its power management technologies, transfer certain of its assets and over 300 employees to Apple to support chip research and development, in a deal worth $600 million. Apple will pay the dialog $300 million now and prepay $300 million for the delivery of the product over the next three years.
Apple has also awarded Dialog a wide range of new contracts for the supply of power management, audio subsystem, charging and other mixed-signal integrated circuits.
Jalal Bagherli, CEO of Dialog, said: “This transaction reaffirms our long-standing relationship with Apple, and demonstrates the value of the strong business and technologies we have built at Dialog. Going forward, we will have a clear strategic focus, building on our custom and configurable mixed-signal IC expertise and worldclass power-efficient design. Our execution track record, deep customer relationships, and talented employees give us great confidence in our future growth prospects.”
“We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives,” added Bagherli.
Apple will utilize in excess of 300 Dialog engineers and different employees as of now supporting Apple chip advancement, speaking to around 16% of Dialog’s total workforce. Apple will assume certain Dialog facilities in Italy, U.K, Germany.
“Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies. “Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them.”

Dialog said it will emphasis on quickly developing sections of the Internet of Things (IoT), mobile, automotive and storage tech. Dialog likewise plans to start a share buyback program of up to 10% of its outstanding shares following its Q3 trading update.

Source: dialog-semiconductor/press release

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