FRANKFURT, Oct 5 (Reuters) - Germany’s Dialog Semiconductor said on Thursday it would acquire privately held California-based Silego Technology Inc for up to $306 million, helping to strengthen its position in the market for the so-called Internet of Things.
Silego is a leading maker of Configurable Mixed-signal Integrated Circuits, or CMICs, that integrate multiple functions into a single chip that can be configured and customised to perform different functions.
Dialog, in a statement, said it would pay $276 million in cash plus an additional contingent consideration of up to $30.4 million for Silego, which is headquartered in Santa Clara, California and has around 235 employees.
The deal would expand the addressable market of Dialog by more than $1.4 billion, and the company said it expected the transaction to be accretive to its earnings per share in 2018 and accretive to gross margins.
The deal is expected to close in the fourth quarter of this year and will be funded with cash, said Dialog. The company’s product range comprises integrated power management, AC/DC power conversion, charging and low-power connectivity technology. (Reporting by Douglas Busvine; Editing by Ludwig Burger)