KIRCHHEIM (dpa-AFX) - Dialog Semiconductor Plc (DLGNF.PK) announced Monday that it has signed a definitive agreement to acquire Creative Chips GmbH, a supplier of Integrated Circuits or ICs to the Industrial Internet of Things market.
The acquisition is for a cash payment of approximately $80 million, which will be funded from Dialog's balance sheet. The deal also includes an additional contingent consideration of up to $23 million, based on future revenue targets in 2020 and 2021.
The transaction is expected to close in the fourth quarter of 2019.
Germany -based Creative Chips is a fabless semiconductor company with a growing IC business supplying a broad portfolio of industrial Ethernet and other mixed-signal products. The company is expected to generate revenues of approximately $20 million in calendar year 2019 with revenue growth of over 25% per annum anticipated over the next few years.
Dialog said the new acquisition is strategic to capture the significant growth potential of the Industrial IoT market.
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