Apple has struck a $600 million deal with Dialog for the licensing of select power management technologies, the acquisition of certain assets, and the transfer of over 300 employees.
Dialog says Apple will pay $300 million in cash for the transaction and prepay $300 million for products to be delivered over the next three years. The employees who are being transferred have worked closely with Apple for many years and this transition will reportedly foster deeper collaboration between the two companies.
The company also announced that it has been awarded a broad range of new contracts from Apple for the development and supply of power management, audio subsystem, charging and other mixed-signal integrated circuits. Revenue from the new contracts is expected to be realized starting in 2019 and accelerating in 2020 and 2021.
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 world- class 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 employ more than 300 Dialog engineers and other employees already supporting Apple chip development, representing approximately 16% of Dialog’s total workforce. Apple will assume certain Dialog facilities in Livorno (Italy), Swindon (U.K.), Nabern and Neuaubing (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's 2018 revenue will not be affected by this agreement and the company will continue shipments of current products in production to Apple.
More details in the charts below...
Dialog says Apple will pay $300 million in cash for the transaction and prepay $300 million for products to be delivered over the next three years. The employees who are being transferred have worked closely with Apple for many years and this transition will reportedly foster deeper collaboration between the two companies.
The company also announced that it has been awarded a broad range of new contracts from Apple for the development and supply of power management, audio subsystem, charging and other mixed-signal integrated circuits. Revenue from the new contracts is expected to be realized starting in 2019 and accelerating in 2020 and 2021.
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 world- class 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 employ more than 300 Dialog engineers and other employees already supporting Apple chip development, representing approximately 16% of Dialog’s total workforce. Apple will assume certain Dialog facilities in Livorno (Italy), Swindon (U.K.), Nabern and Neuaubing (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's 2018 revenue will not be affected by this agreement and the company will continue shipments of current products in production to Apple.
More details in the charts below...