Atmel to Acquire Dialog Semiconductor, Stock Skyrockets

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By Jacob Maslow

Atmel (NASDAQ:ATML) stock skyrocketed 15.27% to $8.38 a share during Monday’spre-market trading. The jump came after the company announced that it would acquire Dialog Semiconductor (OTCMKTS:DLGNF) in a $4.6 billion stock and cash deal.

Atmel shareholders will receive $4.65in cash as well as 0.112 of a share for Dialog Semiconductorfor each Atmel share.When the transaction is complete, Atmel shareholders will own approximately 38% of the company.

Dialog, a London-based company, sells chips that are used to manage power in high-end smartphones. Atmel sells microcontrollers, or chips, that supply computer power for various business and consumer hardware. Dialog’s CEO Jalal Bagherli stated that the deal would allow the company to reduce its dependence on smartphone makers.

Within the next two years, Dialog Semiconductor expects to have annual cost synergies of$150 million and combined revenues of about $2.7 billion.

Steven Laub, Atmel CEO, stated that Dialog’s power management capabilities and Atmel’s focus on microcontrollers, security and connectivity will allow Dialog to “target high-growth applications”in the IoT, mobile and the automotive markets.

The deal has been approved by both company boards, but is still subject to shareholder and regulatory approval. If approved, the deal is expected to close during the first quarter of 2016.


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