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This IDC Flash reviews United Kingdom–based Dialog Semiconductor's announcement on September 20, 2015, that it is acquiring Atmel Corp. based in San Jose, California, in a cash and stock transaction for a total of approximately $4.6 billion. Under the terms of the agreement, Atmel shareholders will receive $4.65 in cash and 0.112 shares of the new company. The transaction will be financed with the issuance of 49 million shares of Dialog stock, $2.1 billion term loan financing, and $210 million from the combined balance sheet. Expected combined revenue of the two companies will be $2.7 billion in annual sales. Atmel began exploring sales options after its long-term CEO Steve Laub announced he would retire at the end of August 2015. The deal is expected to close in the first quarter of 2016. According to Dialog, the transaction is expected to be accretive to Dialog's underlying earnings, and Dialog anticipates achieving projected annual cost savings of $150 million over two years. Post transaction, Atmel shareholders will own 38% of the combined company. The new entity will retain the Dialog Semiconductor name.