Dialog Semiconductor has announced plans to acquire iWatt, a provider of digital-centric power management ICs, for as much as US$345 million.
Dialog said it will pay approximately US$310 million in cash, plus up to US$35 million in contingent consideration based on achieving future revenue targets. The deal is being funded from both Dialog's existing cash resources and additional debt facilities of US$125 million, the company disclosed.
The boards of directors of Dialog and iWatt have approved the deal, which is expected to close by the end of July 2013.
The acquisition will enhance Dialog's market leadership in PWM ICs for tablets and smartphones, by adding iWatt's complementary AC/DC digital power management technology, Dialog said. Acquiring iWatt will also help diversify Dialog's PWM IC offerings to include those for AC/DC charger adaptor power supplies and LED solid state lighting, Dialog indicated.
In addition, the deal adds new tier-1 customers as well as a portfolio of more than 110 patents, Dialog said.
Headquartered in Silicon Valley, California, iWatt has approximately 180 employees worldwide. In financial year 2012, iWatt generated revenues of US$74 million - growth of 46% over 2011.
"iWatt has been shipping products to numerous top-tier customers and is expected to increase our future business opportunities with market leading customers such as Samsung, HTC and Nokia in the portable segment, and GE, Osram and Philips in the fast growing solid state lighting market," said Dialog CEO Jalal Bagherli in a statement.
