A UK-based German chipmaker which supplies Apple has snapped up a US tech firm in a deal worth up to $306m.
Dialog Semiconductor will buy California's Silego Technology in a $276m cash deal with a further consideration of $30.4m it announced on Thursday morning.
Silego makes Configurable Mixed-signal ICs (CMIC) - that is, chips which can be customised - and will push Dialog further into the growing Internet of Things (IoT) business.
"What Silego has developed is truly unique – a mixed-signal platform which customers can configure to their design requirements on the fly, drastically reducing the time to bring their products to market,” said Dialog chief executive Jalal Bagherli.
And Silego chief executive John Teegan said: “Our proprietary and configurable approach has allowed Silego to establish leadership while creating a new market. By leveraging Dialog’s technology and capabilities, I am confident we can further drive adoption of CMICs.”
Dialog will take on Silego's more than 200 employees and the deal is expected to close by the end of the year.
Silego forecasts $80m revenue for 2017 and double digit growth in 2018. That is expected to boost Dialog's full-year margins for 2018 the company said.
Barclays and Hogan Lovells were financial and legal advisers respectively to Dialog on the deal.
Dialog shares were flat at 38.37 pence per share in early morning trading.