Apple Inks $600 Million Deal with Chip Maker

 

Apple’s never-ending quest to develop the world’s best digital products has led it to acquire part of one of the world’s best chip makers. Today, Apple announced it has reached a deal with European chip maker Dialogue Semiconductor for $600 million.

A Deal in Two Parts

The deal is a deal in two parts. First according to the release, Apple will pay $300 million to purchase a portion of Dialogue outright, and has committed another $300 million to licensing technology and assets from the remaining portion of the company. As such, the overall deal will be worth a resounding $600 million.

Apple Acquires Dialogue Personnel

Along with licensing IP and assets, more than 300 Dialogue employees will also be on-boarded as Apple employees. Most of the 300 employees were said to have already been working closely with Apple for quite sometime. The personnel acquisition will be among Apple’s largest ever. All employees will be from the company’s European locations.

A Longstanding Relationship

Apple has been using Dialogue chips ever since the early versions of the iphone. The deal however signifies a reconciliation of sorts between the two tech companies who were said to have been on less than the best of terms ever since rumors that Apple was going to use another chip maker had caused Dialogue’s stock to tumble earlier this year. To echo this sentiment, Dialogue Seminconductor CEO Jalal Bagherli remarked, “This transaction reaffirms our long-standing relationship with Apple, and demonstrates the value of the strong business and technologies we have built at Dialog.”

What the Future May Hold

Apple is expected to account for three-quarters of all Dialogue sales in 2018. This dependence is expected to fall in coming years however as Dialogue is anticipating Apple to account for only 35-40% of sales by 2022. The deal will add to Dialogue’s reported $525 million net cash position.

The deal is expected to close sometime in the first half of 2019. 

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