Renesas and Dialog Semiconductor have completed Renesas’ acquisition of the entire issued and to-be-issued share capital of Dialog.
Renesas will fund the cash consideration payable to Dialog shareholders of around EUR 4.8bn (US$5.7bn) through a combination of debt, cash on hand and the proceeds of an equity offering of approximately JPY222.6bn.
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“This transaction builds on our long-term strategy to offer a complete set of solutions with more leading-edge analogue and mixed signal products that deliver value and innovation to the customers,” said Renesas president & CEO, Hidetoshi Shibata.
“We are excited to welcome the talented team of Dialog employees, as well as the customers and suppliers of Dialog to the Renesas community. The combination augments engineering scale and delivers a diversified product portfolio across multiple, attractive end markets.
“Together, we are positioned to capitalise on an array of growing opportunities including the IoT, industrial and automotive fields.”
Renesas will expand its market presence with a range of product, by combining Dialog’s low-power mixed signal products, low-power Wi-Fi and Bluetooth connectivity, flash memory, battery and power management, as well as its experience and knowledge in providing configurable mixed-signal (CMIC) solutions and more.
The acquisition will also enable Renesas to extend its go-to-market initiatives.
Renesas and Dialog have launched more than 35 ‘Winning Combinations’ – product combinations of ‘Embedded Computing + Analog + Power + Connectivity.’
Renesas anticipates incremental revenue growth of around US$200m. The combined company also expects cost savings from operational efficiencies to result in a financial impact of approximately US$125m.
Renesas expects the acquisition to be accretive to Renesas’ EBITDA and gross and operating margins (in each case, on a non-GAAP basis) after closing, consistent with prior guidance.
With the transaction now closed, Dialog has become a wholly-owned subsidiary of Renesas.
Around 2,300 Dialog employees have joined Renesas Group.
