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10/11/2018, 8:51 AM (Source: TeleTrader)
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Dialog Semiconductor, Apple strike $600M licensing deal

United Kingdom-based chip developer Dialog Semiconductor Plc said on Thursday that it reached a licensing deal with Apple, Inc. worth $600 million. The American tech giant will pay $300 million in cash for the license of certain power management integrated circuits (PMICs) and prepay another $300 million for products to be delivered over the next three years. According to the agreement, Dialog will also transfer some of its assets in Italy, the UK and Germany to Apple. Furthermore, over 300 engineers and other employees which have already worked closely with Apple will join the US firm to support chip research and development.

"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," Johny Srouji, Apple's senior vice president of Hardware Technologies, said. Dialog CEO Jalal Bagherli stated the deal with the iPhone maker will benefit the company and its employees as it will provide "enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives." Dialog noted its revenue for 2018 will not be affected by the agreement and added it will continue shipments of current products in production to Apple.

Dialog's shares soared over 15% in early Frankfurt trade following the announcement.

Breaking the News / NP