In a few short weeks, Dialog Semiconductor has gone from being regulated in London to Berlin and, possibly, now Tokyo, as it is discussions to be acquired by Renesas Electronics in a $6bn deal.
The company on Sunday confirmed it is in advanced discussions with Renesas regarding the possible all cash offer of €67.50 per share, which would value the company at €4.9bn ($5.9bn).
This follows the Renesas acquisition of IDT in 2019 and data centre and automotive power specialist Intersil in 2018, where the technologiesd have been combined into 210 reference designs aimed at vertical application in industrial, infrastructure, automotive, and consumer markets.
The acquisition of Dialog would add industrial and consumer programmable power, including contracts with Apple, as well low power Bluetooth wireless and industrial networking and memory technology from its own acquisition of Adesto in 2020. Renesas is already the largest supplier of industrial microcontrollers with the controller ranges from Hitachi and Mitsubishi Electric and its own proprietary and ARM-based devices. But it is the low power technology that it wants.
Whether there is enough value in the remains to be seem. Renesas sees $200m value in cross selling after two years, and $125m in backend cost reductions. " All these systems complement and expand Renesas’ leadership portfolio in delivering comprehensive solutions to improve performance and efficiency in high-computing electronic systems," said Renesas. "The acquisition of these low-power technologies enhances Renesas’ product portfolio and expands horizons in addressing high-growth markets in the IoT field."
“There can be no certainty that any firm offer will be made for the Company, nor as to the terms on which any firm offer might be made,” said a statement. Under the rules of the German regulator, Renesas now has until 5pm (London time) on 7th March 2021 to announce a firm intention to make an offer for the company.