Dialog Semiconductor, is an Anglo-German chip developer that is based in Reading. The company has said that it is remains to be open to making acquisitions following the company’s termination of the discussions on acquiring Synaptics, a touchpad tech firm, earlier this week.
According to sources who spoke to Reuters regarding the matter, the deal came through after Synaptics baulked at the proposed terms of Dialog Semiconductor, including the price that it offered.
Any later acquisitions by Dialog Semiconductor would have to be for the companies that are smaller as compared to Synaptics. It will be worth approximately $1.6bn, and would concentrate on its strength in consumer products and the internet of things.
During an earnings call, Jalal Bagherli, its Chief executive, said that the firm is “not looking to jump miles away from where we are good at.” His statement was delivered after he reported an increase of 16 percent in year-on-year revenue on the morning of Thursday.
Dialog Semicondutor is attempting to diversify its business by ramping up products that are used in low-energy wearable devices, smart homes, and bluetooth headsets.
Dialog Semiconductor also issued some guidance regarding flat gross margins this year as a whole. Last May, its top customer, Apple, entered into an agreement in order to source its power management chips from two suppliers, thereby ending the exclusivity of Dialog Semiconductor on the said deal.
However, Bagherli said that the company’s relationship with Apple is very healthy.
He added: “All other products are up for grabs and we are grabbing a good share.”
The share price of the company has dropped by more than 4 percent after the comments of Bagherli.
With regards to the Synaptics deal, Bagherli stated: “In any acquisition of this size there’s a lot of factors to get right. We didn’t feel that the right set of parameters were coming together to create value for our shareholders.”