Apple Inc. has decided to take over its longtime associate and provider of the Power Management Technology that powers the iPhones. Since the launch of the first iPhone almost about a decade ago, Apple has used power management chips from Dialog to extend the battery lives.
This deal is the largest that Apple will be making at 600 million with their power management technology provider Dialog. This colossal take over even overshadows the 2013 acquisition of Face Id creator PrimeSense by Apple worth three hundred and fifty million dollars.
Shareholders of Dialog are celebrating and the share prices of the power management technology provider have shown a surge of an astounding 34 percent since Wednesday. The share prices were shaky earlier this year when Apple had announced that they are considering buying chips from another provider. But all is now well, and maybe a little more than well at the Dialog share front.
The takeover of the Anglo-German power management technology company is as unusual as it is humongous. Apple is buying patents, taking over a 300 strong engineering team and offices of Dialog in Britain, Italy, and Germany. The engineering team consists mostly of people who have already worked on chips for Apple Phones. Almost half of the deal’s value that is around 300 million US dollars, is paid as a price for their engineers and offices while the other half is prepayment for the chips Dialog is to provide to apple over the course of next three years.
Dialog, the power management technology providers have issued a statement to the effect that they are seeking a transformation of the business where they will be focusing on other areas, like the Internet of Things that includes interconnected devices like home speakers, smartwatches, fitness trackers etc.