Renesas, one of the world’s biggest auto chip makers, is paying a 20% premium on the current market price of the Frankfurt listed company.
Dialog Semiconductor said in a statement that the deal represented a “compelling opportunity” for its shareholders and its board of directors would unanimously recommend the offer.
In the past few years Renesas, which generates about half its revenue from automotive semiconductors, has been investing aggressively to broaden its footprint beyond cars to areas such as data centres and consumer devices. In 2016 Renesas bought Intersil for $3.2 billion and in 2019 it bought IDT for $6 billion.
Dialog had been a major supplier of power management ICs to Apple, until it moved production in house and bought the company's PMIC business for $600m, since then it has been looking to diversify its portfolio.
