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.
“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.”
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.
Barclays is acting as the financial advisor to Dialog, and Hogan Lovells is acting as its legal counsel for the transaction.