“Apple Inc is buying the power-management technology at the heart of its iPhones in a $600 million deal with Dialog Semiconductor that also secures the German-listed company’s role as a supplier to the U.S. tech giant,” Stephen Nellis and Douglas Busvine report for Reuters. “The agreement to acquire patents and people from the Anglo-German chip designer is not only unusual, but also the largest of its kind by Apple, whose last sizeable acquisition was the $350 million purchase of Face ID creator PrimeSense in 2013. Dialog shares surged as much as 34 percent on Thursday, their most since 2002, as the deal bought the company time to reduce its dependence on Apple – which it expects to account for three-quarters of this year’s sales.”

“Dialog’s shares had tumbled earlier this year when it said Apple planned to use chips from another supplier,” Nellis and Busvine report. “Half of the deal’s value, or about $300 million, is cash for the Dialog engineers and offices and the other $300 million is pre-payment to Dialog for supplying chips over the next three years, the companies said.”

“Apple is buying about 16 percent of Dialog’s workforce. Apple said these employees would stay in Europe and would report to Johny Srouji, the company’s senior vice president of hardware technologies who oversees Apple’s chip design efforts,” Nellis and Busvine report. “‘Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them,’ Srouji said. Apple has added around 20,000 employees in Europe since 2000. It already has a chip design centers in Munich, Germany, where it employs 1,000 staff, and St Albans, Britain. The deal will give Apple four more from Dialog, in Livorno in Italy, Swindon in Britain, and Nabern and Neuaubing in Germany.”

Read more in the full article here.

MacDailyNews Take: This is great news for Apple and even better news for Dialog Semi!

SEE ALSO:
Dialog Semi sinks 17 percent after warning Apple will bifurcate iPhone power-management chip orders – June 1, 2018
Shares in chipmaker Dialog plunge over Apple contract doubts – April 11, 2017
Apple supplier Dialog partners with wireless charging company Energous – December 15, 2016