Dialog to acquire Atmel for $4.6 Billion
29 September, 2015
CEO Bagherli: "Our new, enlarged company will be a leader in Mobile Power, IoT and Automotive"
CEO Bagherli: “Our new, enlarged company will be a leader in Mobile Power, IoT and Automotive”
Dialog Semiconductor and Atmel Corporation announced today that Dialog has agreed to acquire Atmel in a cash and stock transaction for total consideration of approximately $4.6 billion. The acquisition creates a global leader in both Power Management and Embedded Processing solutions. The combined company will address a market opportunity of approximately $20 billion by 2019. Following the announcement, Cypress has withdrawn its offer to buy Atmel.
“Our new, enlarged company will be a leader in Mobile Power, IoT and Automotive. We firmly believe that by combining Power Management, Microcontrollers, Connectivity and Security technologies, we will create a strong platform for innovation and growth in the large and attractive market segments we serve,” said Jalal Bagherli, Dialog Chief Executive Officer.
“Adding Dialog’s world-class capabilities in Power Management with Atmel’s keen focus on Microcontrollers, Connectivity and Security will enable Dialog to more effectively target high-growth applications within the Mobile, IoT and Automotive markets,” said Steven Laub, Atmel President and Chief Executive Officer.
The transaction is expected to close in the first quarter of calendar 2016. Dialog intends to fund the transaction with a combination of existing cash, $2.1 billion of new debt and the issuance to Atmel shareholders of approximately 49 million ADSs expected to be listed on the New York Stock Exchange or the NASDAQ Stock Market. It is projected that Atmel shareholders will own approximately 38% of the combined company.
Dialog anticipates achieving projected annual cost savings of $150 million within two years.
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