Dialog Semiconductor said it would buy privately held configurable mixed-signal IC (CMIC) vendor Silego Technology for up to $306 million, in a deal it said would grow Dialog's sales at existing customers and also expand its customer base.
SAN FRANCISCO — Dialog Semiconductor said it would buy privately held configurable mixed-signal IC (CMIC) vendor Silego Technology for up to $306 million, in a deal it said would grow Dialog's sales at existing customers and also expand its customer base.
Dialog executives described Silego's technology as highly complementary to Dialog's own power management and connectivity offerings. They estimated the deal would expand Dialog's total addressable market by more than $1.4 billion.
Silego's CMICs combine analog, digital, and nonvolatile-memory functionality with software tools in a flexible, cost-effective design and prototyping platform. Silego (Santa Clara, Calif.) announced in August that it shipped its 3 billionth device.
"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, Dialog's CEO, in a statement.
Under the terms of a definitive agreement signed by the two companies, Dialog will pay $276 million in cash plus an additional consideration of up to $30.4 million contingent on sales and performance goals to acquire Silego. The deal is expected to close in the fourth quarter.
Silego projects its 2017 revenue will be more than $80 million, with double-digit growth on top of that expected next year. The company has about 235 employees worldwide, most of whom are expected to join Dialog as a result of the deal.
— Dylan McGrath is editor in chief of EE Times.
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