Dialog Semiconductor, a leading supplier of power management, charging, AC/DC power conversion, Wi-Fi and Bluetooth low energy technology, and Adesto Technologies Corporation – “Adesto”, a number one supplier of innovative, customized integrated circuits (ICs) and embedded systems for the Industrial Internet of Things (IIoT) market, revealed they’ve signed a definitive settlement for Dialog to purchase all outstanding shares of Adesto.
Adesto accelerates Dialog’s expansion into the rising IIoT marketplace that enables smart buildings and industrial automation, seamlessly driving cloud connectivity.
Based in Santa Clara, Adesto has nearly 270 employees and an established portfolio of business solutions for smart constructing automation that fully complements Dialog’s manufacturing automation products. Adesto’s solutions are offered throughout the industrial, consumer, medical, and communications markets.
Dialog will absorb Adesto for $12.55 per share in cash, or about $500 million enterprise value. Dialog’s balance sheet shall back the acquisition deal.
The deal is predicted to be EPS accretive for Dialog throughout the first calendar year following close. Dialog expects annual cost synergies of roughly $20 million within the first calendar year of shut throughout the combined firm.
Dialog anticipates appreciable income synergies given the complementary nature of the product fleet and technology. Adesto expects to report FY 2019 income of roughly $118 million, and continued revenue growth is anticipated over the next few years.
The deal is subject to certain regulatory permissions and customary closing conditions and is anticipated to conclude in Q3 2020.