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Dialog and Atmel have announced a merger. Comments of the official distributor in Russia

Many have already heard that in the semiconductor industry announced the next major merger in the field of electronics. September 20, 2015 Atmel Corporation and Dialog Semiconductor have issued press releases on the upcoming deal. According to a press release, Dialog acquires Atmel for about $ 4.6 billion. Under the terms of the agreement, Atmel shareholders will receive $ 4.65 in cash and 0.112 American depositary shares Dialog for each security they own, totaling $ 10.42 per share as of September 18, 2015. Close deal is expected in the first quarter of 2016. At the end of the merger process, Atmel shareholders will own a 38% stake in the new company. Until this date, both companies will operate separately.


We (Rainbow company), as the official distributor of Atmel in Russia, want to give some comments on this transaction and its impact on the Russian electronics development market.

About Dialog Semiconductor in Brief
Atmel hardly needs to be introduced to people involved in the development of electronics at any level: both professional and amateur. Dialog Semiconductor is less known in our market.

Dialog Semiconductor is headquartered in the UK, research centers and representative offices are located in Europe, Asia and the USA. The company implements a fabless business model in collaboration with world-class chip manufacturers. Being an expert in his field and owning an extensive set of patents, Dialog specializes in the development of standard and custom microcircuits of mixed signals in the segments of power management, power conversion, communication and audio applications. Dialog products are optimized for use in smartphones, tablets, IoT devices (“Internet of Things”), LED lighting and illumination, as well as in “Smart Home” systems. With gross revenues of $ 1.16 billion in 2014, the company has become one of the fastest growing public semiconductor companies in Europe.

Consumers of Atmel products are probably interested in the question of the future of components that are used in already developed products or are planned to be used in new developments. We want to reassure everyone: you don’t have to part with your favorite element base, we specifically turned to Atmel and received a letter of guarantee that the support period for the families SAM7x, SAM7S (ARM 7), SAM G51, SAM G54, QTouch 42QT would be at least 5 years (until June 2020). The remaining families ( including AVR ) will be available for at least 10 years (until June 2025).
The product lines of both companies complement each other. Their merger as a result of the transaction, together with the concentration of 540 Dialog patents and more than 1600 Atmel patents in the hands of one company, will transform the combined company into a global player in the global semiconductor market in the industrial, mobile and automotive electronics segments, and will also take a leading position in the fast-growing Internet of Things. It is expected that synergy from the merger of products and technologies will bring the company to a new level of development.
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Dialog also inherits the sales network and tens of thousands of Atmel customers around the world, including Russia. This should be a major impetus for the process of sales diversification. Currently, 87% of all Dialog sales are made up of TOP 5 customers. For comparison, the similar indicator of the incorporated company is expected at the level of 45%.
So wait for new products from Atmel, which we will talk about in our blog. By the way, this week the Atmel Studio 7 became available for download - a free IDE for developing software for Atmel microcontrollers of all families.

The links below are available materials from open sources, providing comprehensive information on all aspects of the upcoming transaction, the details of combining Atmel and Dialog, the strategy for future development and key goals of the new company:
  1. Atmel transaction press release
  2. Press release deal on the site Dialog
  3. Dialog Investor Presentation on 09/24/2015
  4. Q & A for Atmel / Dialog Transaction
  5. Transcript of the teleconference for investors from Europe
  6. Teleconference transcript for US investors

Source: https://habr.com/ru/post/275379/


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