Dialog Semiconductor Expands into IIoT Market Through Adesto Technologies AcquisitionFebruary 29, 2020 by Luke James
Dialog Semiconductor and Adesto Technologies have announced that they have signed an agreement for Dialog to acquire all of Adesto’s outstanding shares.
Adesto, which is headquartered in Santa Clara, California, currently has around 270 employees. The company is known worldwide for its established portfolio of industrial solutions for smart building automation. These are sold across the industrial, consumer, medical, and communications markets and complement Dialog’s manufacturing automation products.
When finalised, the acquisition will help to accelerate Dialog’s expansion into the growing IIoT market that is enabling smart buildings and industrial automation, also known as Industry 4.0, through seamless cloud connectivity.
Building a Complementary Product Portfolio
In a statement, spokespersons for the two companies commented that the acquisition was positively influenced by the potential for creating a complementary product portfolio. This will serve customers in key industrial growth sectors.
It will also help to scale Dialog’s IIoT sector capabilities by combining industrial connectivity, smart metering, and building automation solutions, and access to more than 5,000 customers, the majority of which are new for Dialog. Furthermore, the acquisition complements Adesto’s industrial wired connectivity portfolio with Dialog’s wireless portfolio (BLE, Wi-Fi) for smart building and industrial applications.
Other benefits include the enabling of full system solutions for wearables and other IoT applications by combining Adesto’s low-power specialty memory products with Dialog’s BLE & Wi-Fi connectivity and True Wireless Stereo (TWS) Audio ICs.
The automotive market will benefit too, as future growth will be unlocked by qualifying Adesto’s specialty memory products by leveraging Dialog’s established Automotive production and test flow. Additionally, these products address the emerging, fast-growing Artificial Intelligence (AI) segment.
Adesto Technologies corporation exterior. Image acquired from Wikimedia Commons.
Unanimously Approved by Adesto Directors
Adesto’s Board of Directors unanimously approved the $12.55 per share ($500 million in total enterprise value) purchase deal, which will be funded by Dialog’s balance sheet, and advised Adesto stockholders to also vote in its favour. The transaction is subject to certain regulatory approvals and customary closing conditions and is expected to close in the third quarter of 2020.
“This acquisition substantially enhances our position in the Industrial IoT market,” said Jalal Bagherli, CEO of Dialog. “Adesto’s established strength in connectivity solutions and highly optimised products for building and industrial automation perfectly complements and adds scale to our Industrial IoT portfolio from the recently acquired Creative Chips. Adesto’s deep customer relationships, comprehensive system expertise, and proprietary technology will deliver enhanced value for Dialog customers.”
“Together with Dialog, we are positioned to create unique Industrial IoT solutions through the integration of our best-in-class technologies for today’s increasingly connected world,” added Adesto’s CEO, Narbeh Derhacobian. “We are extremely pleased to join Dialog to bring more value to our combined customer base.”