Dialog Confirms $5.9 Billion Renesas Offer Talks

Article By : Nitin Dahad

Dialog confirmed speculation about Renesas being interested in buying the company, but the two have not agreed to a final offer...

Dialog Semiconductor confirmed Sunday that it is in advanced talks to be purchased by Renesas Electronics Corp. Renesas proposes to pay cash for all of Dialog’s shares at €67.50 per share. Renesas has 28 days (i.e., until 7 March 2021) to either announce a firm intention to make an offer for Dialog or declare it does not intend to make an offer. The offer values the company at around €4.9 billion (around $5.9 billion).

Dialog said it made the statement without the consent of Renesas in order to address press speculation. It added “A further announcement will be made as and when appropriate. There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any firm offer might be made.”

According to Bloomberg, Dialog had been in talks with other suitors, including STMicroelectronics, which had been outbid by Renesas.

Renesas has been working with Dialog Semiconductor for some time, with Dialog providing power management solutions for Renesas automotive R-Car platform. Last year, Dialog announced an expanded collaboration for Renesas’ R-Car Gen 2 and R-Car H3 platforms based on the power management company’s DA9063-A system PMIC (power management IC) and DA9224-A sub PMIC.

Last month, Dialog increased its Q4 2020 revenue outlook, expecting between $436 million and $441 million, mainly due to stronger than expected consumer demand for 5G phones and tablets.

Dialog itself had been on the acquisition trail since it received $300 million in cash as part of Apple’s $600 million deal for a large chunk of its PMIC team. Last year Dialog acquired Adesto Technologies for $500 million, and in 2019 bought Creative Chips for $80 million, and Silicon Motion’s mobile RF IC business for $45 million.

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