As part of the deal, Apple will buy some of the Anglo-German chip maker's assets and 300 of R & D staff, which is around 16 percent of the dialogue's workforce. Dialogged shares increased as much as 34 percent on the news, their highest since 2002.
Announced the deal on Thursday, Dialog said that Apple would pay it $ 300 million in cash for the transaction and prepay an additional $ 300 million for products to be delivered to Apple over the next three years. Commenting on the news, told Apple SVP Johny Srouji TechCrunch :
Dialog has deep expertise in chip development and we are thrilled that this talented group of engineers who have long supported our products now work directly for Apple. Our Dialogue Relationship dates back to the early iPhones, and we look forward to continuing this long-term relationship with them.
Dialog shares took a thumb in the end of 201
The recording came as a serious battle for Dialog, which exclusively designs today's power management chips for iPhone, iPad and Apple Watch models. Apple accounted for almost three quarters of Dialog Semiconductor's revenues in 2016.
But today's agreement gives Dialog time to reduce its dependence on Apple, as the chip maker predicts, accounting for three quarters of sales during this year.
Dialogue Managing Director Jalal Bagherli told Reuters The chip maker could now look forward to a "steady, even" change of business as it seeks new growth opportunities in other markets that may include home computers, training tracks or clear watches .
The agreement represents a major investment for Apple, which will take over the dialogue facilities in Italy, Germany and the United States, and expand its research and development of pieces significantly across Europe. Subject to regulatory approval, an agreement is expected to close in the first half of 2019.