Graham Pitcher

Played 2, Lost 2

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Dialog Semiconductor’s attempt to acquire other companies appears to have received another rebuff. Having tried and failed to acquire analogue and sensor specialist ams, it recently offered to buy Atmel and this approach was accepted by Atmel’s board. Now, following an unsolicited approach from Microchip, Atmel’s board has declared the latter’s offer to be ‘superior’. Played 2, Lost 2.

There’s more than one reason why Microchip is interested in Atmel, but its microcontroller technology must be right at the top of the list. While Microchip has an extensive portfolio of 8bit MCUs, its 32bit range is more limited and based on MIPS technology. As such, it stands almost alone, but acquiring Atmel allows Microchip to enter the ARM market with a ready made range of devices.

Atmel has a range of other interests which Microchip notes either complement or enhance its portfolio. Together, the two companies would be much closer to a ‘one stop IoT shop’.

However, it’s not all bad news for Dialog; if the Microchip/Atmel deal goes ahead, it gets $137million in compensation.