Dialog Semiconductor Plc. / Key word(s): Acquisition
10.02.2011 07:31
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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DIALOG SEMICONDUCTOR TO ACQUIRE SITEL, A LEADING SUPPLIER OF WIRELESS
CONNECTIVITY AND VOIP ICs
Kirchheim/Teck, February 10, 2011 - Dialog Semiconductor plc (FWB.DLG), a
leading provider of highly integrated power management semiconductor
solutions for portable devices including Smartphones and Tablet PCs, is
pleased to announce that it has completed a transaction to acquire SiTel
Semiconductor B.V. ('SiTel'), a leader in short-range wireless, digital
cordless and VoIP technology.
Acquisition Highlights
- Adds short-range wireless connectivity and VoIP to Dialog's existing
technology portfolio
- Adds major global customers in the portable device market
- Significantly expands Dialog's addressable market targeting high growth
wireless personal portable devices - unit shipments of over 100 million
in 2010
- An established, cash-generative and profitable business with unaudited
2010 revenue of $116.9 million, of which approximately 90% were
standard products.
- Enterprise value of $86.5 million(â¦)
- Expected to be accretive in Q3 2011
(â¦) Net cash paid of $84.5 million
Headquartered in the Netherlands, with approximately 140 employees, SiTel
is a leading provider of semiconductors for short range wireless
connectivity and VoIP applications. SiTel's industry-leading products are
found in a broad range of personal portable applications including digital
cordless phones, professional wireless headsets, gaming and portable
medical devices. SiTel's VoIP technology is increasingly used by leading
manufacturers of enterprise and residential VoIP connectivity products.
Additionally, the combination of SiTel's VoIP-based internet connectivity
and short-range wireless capabilities provides an ideal platform to enable
a new generation of wireless smart home networked devices with direct IP
addressability - a fast-emerging market segment.
Wireless connectivity in personal portable devices is becoming increasingly
prevalent within our society. As this trend continues, the market for
proprietary and standards-based low power wireless ICs represents one of
the highest growth opportunities in the semiconductor market today, with
total units predicted by IMS Research to reach more than 4 billion by 2015,
representing a CAGR of 32.2% between 2010 and 2015.
Under the terms of the transaction, Dialog paid an enterprise value of
$86.5 million. The transaction is expected to be accretive to both cash and
IFRS EPS from Q3 2011. The acquisition has been funded using Dialog's
existing cash reserves.
In financial year 2010 SiTel generated unaudited revenues of approximately
$116.9 million (2009: $109.6 million) with a 42.4% gross margin. SiTel's
customers include Gigaset, Panasonic, Microsoft, Plantronics and LG
Ericsson: each world-leading brand names in their respective market
segments for portable personal consumer devices and VoIP connectivity.
SiTel was previously a portfolio company of UK-based private equity firm
HgCapital.
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Information and Explaination of the Issuer to this News:
'We see the acquisition as highly complementary to our existing business
and it will allow Dialog to address adjacent emerging connectivity markets
in a compelling way,' said Dr. Jalal Bagherli, CEO of Dialog Semiconductor.
'The acquisition adds an established team of nearly 100 engineers,
including expertise in low power RF. Dialog now benefits from a
differentiated technology portfolio and an extremely competitive platform
for our customers, leveraging both our superior power management technology
with low power short-range wireless technology,' continued Bagherli.
'Our ultra low power wireless technology, including both innovative
proprietary and standards-based solutions has allowed SiTel to become a
leader in wireless connectivity,' stated Dr. Asmund Tielens, CEO of SiTel.
'We are proud of the many milestones and technology 'firsts' SiTel has
achieved in the CMOS wireless single chip field. By leveraging Dialog's
market leadership, I am confident we can drive adoption of wireless
connectivity into this burgeoning consumer portable market,' added Tielens.
Jefferies International Limited acted as financial adviser to Dialog.
Conference Call on Thursday 10th February at 9:30 CET/8:30 UK
Dialog Semiconductor invites you to listen in a live conference call to a
management discussion on the acquisition, the Q4 2010 and full year 2010
performance. To access the call please use the following dial-in numbers:
Germany +49 (0) 6103 485 3000, UK +44 (0) 207 153 2027, USA +1 480 629
9725, with no access code required. An instant replay facility will be
available for 30 days after the call and can be accessed at +49 (0) 69 589
990 568 with access code 4402293#. An audio replay of the conference call
will also be posted soon thereafter on the company's website at:
http://www.diasemi.com/investor_relations.php
Additional Conference Call for US investors and analysts at 17:00 CET /
11:00 Eastern Time
An additional live conference call for the benefit of US-based investors
and analysts will be held at 17:00 (CET) / 11.00 Eastern Time. To access
the call please dial +1 877 941 8633, with no access code required.
For further information please contact:
Dialog Semiconductor FD - London FD - Frankfurt
Neue StraÃe 95 Matt Dixon Ivo Lingnau
D-73230 Kirchheim/Teck T +44 20 7269 7214 T +49 69 920 37 133
Germany matt.dixon@fd.com ivo.lingnau@fd.com
T +49-7021-805-412
F +49-7021-805-200
dialog@fd.com
www.dialog-semiconductor.com
Note to editors:
Dialog Semiconductor creates energy-efficient, highly integrated,
mixed-signal circuits optimised for personal mobile, lighting & display and
automotive applications. The company provides flexible and dynamic support,
world-class innovation and the assurance of dealing with an established
business partner.
With its unique focus and expertise in system power management, Dialog
brings decades of experience to the rapid development of integrated
circuits for power management, audio, display processing and motor control.
Dialog's processor companion chips are essential for enhancing both the
performance of hand-held products and the consumers' multimedia experience.
With world-class manufacturing partners, Dialog operates a fabless business
model.
Dialog Semiconductor plc is headquartered near Stuttgart with a global
sales, R&D and marketing organisation. In 2010, it had $296.6 million in
revenue and was again one of the fastest growing European public
semiconductor companies. It currently has approximately 400 employees. The
company is listed on the Frankfurt (FWB: DLG) stock exchange and is a
member of the German TecDax index.
Forward Looking Statements:
This press release contains 'forward-looking statements' that reflect
management's current views with respect to future events. The words
'anticipate,' 'believe,' 'estimate, 'expect,' 'intend,' 'may,' 'plan,'
'project' and 'should' and similar expressions identify forward-looking
statements. Such statements are subject to risks and uncertainties,
including, but not limited to: an economic downturn in the semiconductor
and telecommunications markets; changes in currency exchange rates and
interest rates, the timing of customer orders and manufacturing lead times,
insufficient, excess or obsolete inventory, the impact of competing
products and their pricing, political risks in the countries in which we
operate or sale and supply constraints. If any of these or other risks and
uncertainties occur (some of which are described under the heading 'Risks
and their management' in Dialog Semiconductor's most recent Annual Report)
or if the assumptions underlying any of these statements prove incorrect,
then actual results may be materially different from those expressed or
implied by such statements. We do not intend or assume any obligation to
update any forward-looking statement, which speaks only as of the date on
which it is made, however, any subsequent statement will supercede any
previous statement.
10.02.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Dialog Semiconductor Plc.
Tower Bridge House, St. Katharine's Way
E1W 1AA London
GroÃbritannien
Phone: +49 7021 805-412
Fax: +49 7021 805-200
E-mail: birgit.hummel@diasemi.com
Internet: www.diasemi.com
ISIN: GB0059822006
WKN: 927200
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Dialog Semiconductor Plc.: DIALOG SEMICONDUCTOR TO ACQUIRE SITEL, A LEADING SUPPLIER OF WIRELESS CONNECTIVITY AND VOIP ICs
| Source: EQS Group AG