UK-based chip designer Dialog Semiconductor is buying Germany’s Creative Chips to add industrial internet of things (IoT) to its portfolio and pursue "ambitions in the Industry 4.0 market." Dialog’s acquisition of the mid-size manufacturer will increase its sales in the area of wireless low power connectivity, configurable mixed-signal and power management integrated circuits, the company said.
Dialog CEO Jalal Begherli said, “The acquisition of Creative Chips is instrumental for Dialog, giving it a strong foothold in the IndustrialIoT market, while still highly complementary to Dialog’s current mixed-signal business.”
The deal is expected to close this quarter, when Dialog will pay $80 million for the acquisition. An addition $23 million will be paid according to revenue targets for the next two years. The company expects Creative Chips to generate about $20 million in sales in 2019, with following revenues to grow 25 percent year-over-year.