Dialog Semiconductor to acquire AC/DC converter chip specialist iWatt

Dialog Semiconductor Plc has entered into an agreement to acquire iWatt Inc. for a cash payment of approximately $310 million, with additional contingent consideration of up to $35 million. Dialog is strengthening its market position in power supply IC market by adding two high growth product families; AC/DC charger adaptor ICs and a broad range of LED Solid State Lighting ICs from iWatt. Dialog claims this acquisition helps the company in expanding its addressable market into the adjacent digital power management space, unlocking new growth opportunities and increasing TAM by a potential $1.8 billion to $5.9 billion by 2015. iWatt with 110 patents is growing its revenues by 46% in 2012. Dialog shares a nugget of market information of power ICs from Gartner where it says the overall global power management semiconductor market is expected to grow to $11.5 billion by 2015. Dialog’s CEO Jalal Bagherli commented, "This acquisition underscores Dialog's strategy to diversify our markets and growth opportunities through select strategic acquisitions. We see the acquisition as highly complementary to our existing PMIC business enabling Dialog to address adjacent emerging power management segments, including cutting-edge AC/DC solutions for next generation fast portable chargers as well as ICs for LED solid state lighting.” “iWatt has been shipping products to numerous top-tier...