FILE PHOTO: Dialog semiconductor logo is pictured at a company building in Germering near Munich, Germany August 15, 2016. REUTERS/Michaela Rehle/File Photo
FRANKFURT (Reuters) – Chip designer Dialog Semiconductor said it would 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 so-called 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.
Reporting by Douglas Busvine; editing by Jason Neely