Cupertino computing giant Apple plans on spending $600 million USD (approximately $782.02 million CAD) to purchase patents and approximately 300 employees from British Dialog Semiconductor.
According to an October 11th, 2018 media release, Apple paid $300 million USD ($391.01 million CAD) in cash, as well as an additional $300 million USD in the form of an upfront payment for Dialog products to be delivered over the next years.
The companies expect the deal to be formalized by the appropriate regulatory bodies in the first half of 2019.
Apple’s acquisition of 300 Dialog employees means that the Britain-based semiconductor manufacturer loses roughly 16 percent of its total workforce.
It’s worth noting that these Dialog employees already primarily worked on Apple chips.
Additionally, Apple will acquire Dialog factories in Italy, Great Britain and Germany.
“Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple,” said Johny Srouji, Apple’s senior vice president of hardware technologies, in the same October 11th media release.
“Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them.
As a result of the deal, Dialog has acquired new Apple contracts for the development of power management systems, audio subsystems, as well as other “mixed-signal integrated circuits.”
“We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives,” said Jalal Bagherli, Dialog’s CEO in the same media release.
Dialog used its media release to note that the company’s 2018 revenue won’t be affected by the new agreement with Apple.