Dialog Semiconductor to acquire Adesto to expand IIoT market business and help industrial automation
From Dialog Semiconductor's official understanding, Dialog Semiconductor, a supplier of highly integrated power management, charging, AC / DC power conversion, Wi-Fi and Bluetooth low energy technology, and Adesto Technologies Corporation (Adesto), today announced that the two parties have signed a final agreement Dialog will acquire all outstanding shares of Adesto.
Dialog said that the acquisition of Adesto will accelerate Dialog's expansion into the growing IIoT market, help smart buildings and industrial automation (Industry 4.0), and seamlessly drive cloud connectivity.
The combination of Dialog and Adesto will also bring complementary product portfolios to the cross-selling of a broad customer base serving growing applications in the industrial market.
It is understood that Adesto is a leading supplier of innovative custom integrated circuits (ICs) and embedded systems in the Industrial Internet of Things (IIoT) market. Its headquarters is located in Santa Clara, California, with approximately 270 employees. Its mature intelligent building automation industry The solution portfolio is a very good complement to Dialog's manufacturing automation portfolio. Adesto's solutions are sold in the industrial, consumer, medical and communications markets.
Dr. Jalal Bagherli, CEO of Dialog Semiconductor, said: "This acquisition will sustainably enhance our position in the industrial IoT market. Adesto's connectivity solutions and highly optimized products for building and industrial automation have strong capabilities that complement each other perfectly. And we have expanded our Industrial IoT product portfolio that we have acquired following our recent acquisition of Creative Chips. Adesto ’s deep customer relationships, comprehensive system technology expertise and know-how will bring greater value to Dialog ’s customers. "
Narbeh Derhacobian, CEO of Adesto, said: "By combining Dialog and Adesto's industry-best technologies, we will create unique IIoT solutions for today's increasingly connected world. We are very excited to join Dialog, which will provide our joint The customer base brings more value. "
Dialog said that after the completion of the acquisition, it is expected to realize Dialog's earnings per share (EPS) appreciation in the first calendar year. And within the first calendar year after the acquisition is completed, it is expected that the combined company will achieve an annual cost synergy of approximately US $ 20 million.
Adesto expects revenue of approximately $ 118 million in fiscal 2019 and expects to continue to grow revenue in the coming years.
The prices of the two companies are combined in the following areas:
• Will expand Dialog's strength in the IIoT field, by combining industrial connectivity solutions, smart meters and building automation solutions, to obtain more than 5,000 customer companies, most of which are new customers to Dialog.
• Dialog ’s wireless product portfolio (BLE, Wi-Fi) will complement Adesto ’s industrial wired connectivity portfolio and better serve smart building and industrial applications. Cloud connectivity further brings differentiated advantages to Dialog's existing industrial solutions.
• Adesto ’s low-power dedicated storage products are combined with Dialog ’s BLE and Wi-Fi wireless connectivity technology and True Wireless Stereo (TWS) audio ICs to achieve completeness for wearables, smart earphones, and other IoT applications System solutions.
• Unlock future growth in the automotive market by leveraging Dialog's mature automotive-grade production and testing processes to empower Adesto's dedicated storage products. In addition, these products are targeted at the emerging, fast-growing field of artificial intelligence (AI).
• Added engineering capabilities and design scale to Dialog, and further expanded Dialog's existing custom IC business, making Dialog one of the largest custom analog mixed-signal semiconductor suppliers.
Dialog said that the acquisition of Adesto will accelerate Dialog's expansion into the growing IIoT market, help smart buildings and industrial automation (Industry 4.0), and seamlessly drive cloud connectivity.
The combination of Dialog and Adesto will also bring complementary product portfolios to the cross-selling of a broad customer base serving growing applications in the industrial market.
It is understood that Adesto is a leading supplier of innovative custom integrated circuits (ICs) and embedded systems in the Industrial Internet of Things (IIoT) market. Its headquarters is located in Santa Clara, California, with approximately 270 employees. Its mature intelligent building automation industry The solution portfolio is a very good complement to Dialog's manufacturing automation portfolio. Adesto's solutions are sold in the industrial, consumer, medical and communications markets.
Dr. Jalal Bagherli, CEO of Dialog Semiconductor, said: "This acquisition will sustainably enhance our position in the industrial IoT market. Adesto's connectivity solutions and highly optimized products for building and industrial automation have strong capabilities that complement each other perfectly. And we have expanded our Industrial IoT product portfolio that we have acquired following our recent acquisition of Creative Chips. Adesto ’s deep customer relationships, comprehensive system technology expertise and know-how will bring greater value to Dialog ’s customers. "
Narbeh Derhacobian, CEO of Adesto, said: "By combining Dialog and Adesto's industry-best technologies, we will create unique IIoT solutions for today's increasingly connected world. We are very excited to join Dialog, which will provide our joint The customer base brings more value. "
Dialog said that after the completion of the acquisition, it is expected to realize Dialog's earnings per share (EPS) appreciation in the first calendar year. And within the first calendar year after the acquisition is completed, it is expected that the combined company will achieve an annual cost synergy of approximately US $ 20 million.
Adesto expects revenue of approximately $ 118 million in fiscal 2019 and expects to continue to grow revenue in the coming years.
The prices of the two companies are combined in the following areas:
• Will expand Dialog's strength in the IIoT field, by combining industrial connectivity solutions, smart meters and building automation solutions, to obtain more than 5,000 customer companies, most of which are new customers to Dialog.
• Dialog ’s wireless product portfolio (BLE, Wi-Fi) will complement Adesto ’s industrial wired connectivity portfolio and better serve smart building and industrial applications. Cloud connectivity further brings differentiated advantages to Dialog's existing industrial solutions.
• Adesto ’s low-power dedicated storage products are combined with Dialog ’s BLE and Wi-Fi wireless connectivity technology and True Wireless Stereo (TWS) audio ICs to achieve completeness for wearables, smart earphones, and other IoT applications System solutions.
• Unlock future growth in the automotive market by leveraging Dialog's mature automotive-grade production and testing processes to empower Adesto's dedicated storage products. In addition, these products are targeted at the emerging, fast-growing field of artificial intelligence (AI).
• Added engineering capabilities and design scale to Dialog, and further expanded Dialog's existing custom IC business, making Dialog one of the largest custom analog mixed-signal semiconductor suppliers.