Atmel to Acquire Dialog Semiconductor, Stock Skyrockets

Dialog announced it was planning to pay for his deal through cash, debt of $2.2 billion and 49 million shares of Dialog American Depository. Dialog is issuing new shares and borrowing to finance the purchase.

Assuming the deal completes, the combined company will have a reasonable portfolio; power, computing, touch and security are technologies applicable to a range of market sectors.

FTI Consulting’s strategic communications operation is advising Silicon Valley’s Atmel Corp.in its $4.6B acquisition by London-based Dialog Semiconductor. “You could argue there’s a fit”.

Chinese companies are swooping in and acquiring USA chip companies left and right.

Our sense is that Atmel ran a thorough process and we see no regulatory hurdles to this deal.

Dialog Semiconductor’s chip-swallowing act needs flawless execution to make it worth the risk.

This transaction combines two successful companies and will create significant value for Atmel and Dialog shareholders, customers and employees. Monday’s decline reduces the bid to about $9.26 a share.

“If this is approved by both sides, it is a win-win”, said Christopher Rolland of FBR Capital Markets. The investigation relates to whether the proposal is fair to the public shareholders of Atmel and whether Atmel’s Board breached its fiduciary duties in connection with the proposed sale.

“Dialog needed to expand into the industrial segment, the Internet of all things, so to speak, and that’s Atmel’s specialty”, Cramer explained in Real Money.

Betsy Van Hees, analyst at Wedbush Securities. “They need to continue to invest, which is expensive, and they need new products, which is expensive”. Avago Technologies Ltd (NASDAQ:AVGO) in May agreed to buy Broadcom Corporation (NASDAQ:BRCM) for $37 billion, making the history’s biggest deal in the chip industry.

Agreeing to the point of competition over acquisition, the Cheif Executive Officer at Dialog Semiconductor, Jalal Bagherli said that the company had to beat other bidders in order to acquire Atmel Corporation. The companies expect cost synergies will reach United States dollars 150 million per annum within the next two years and that the acquisition will add to underlying earnings per share in 2017, the first full year following closing.