Dialog Semiconductor is set to acquire Silicon Motion’s mobile communications business for $45 million in cash, expanding its presence in the market for low-power connected devices.
Dialog, which already has a strong Bluetooth franchise, said it would buy Silicon Motion’s FCI product line which includes ultra-low-power, battery-operated Wi-Fi products used in the Internet of Things (IoT).
CEO Jalal Bagherli has highlighted the need to extend Dialog’s connectivity offering into new channels. Wi-Fi-enabled sensors that can be monitored remotely, with a battery life extending for years, are one such opportunity.
Dialog will take on a 100-strong engineering team based in South Korea as part of the deal to buy FCI, which had 2018 revenue of $30 million. The transaction is expected to complete this year.
Dialog Semiconductor CEO Jalal Bagherli earlier the chipset designer is targeting growth opportunities from home healthcare to gaming consoles following a $600 million deal to cut its exposure to Apple.
The Anglo-German chip designer struck the deal in October with Apple, which accounts for three-quarters of its revenue, helping it to weather an iPhone sales downturn better than other suppliers to the smartphone maker.
Dialog said the business that will remain after it transfers a team of programmers and patents to Apple should show strong growth in 2019.