Dialog Semiconductor To Acquire Atmel For Approx. $4.6 Bln

(RTTNews) - Dialog Semiconductor (DLGNF.PK) and Atmel Corp. (NASDAQ: ATML) announced that Dialog has agreed to acquire Atmel for approximately $4.6 billion.

Under the terms of the agreement, Atmel shareholders will receive $4.65 in cash and 0.112 of a Dialog American Depository Share for each Atmel common share held at close of the transaction. This will result in the economic equivalent of $10.42/Atmel share based on Dialog's closing stock price as of 18 September 2015.

The purchase price implies a total equity value for Atmel of approximately $4.6 billion and a total enterprise value of approximately $4.4 billion after deduction of Atmel's net cash.

The transaction is expected to be accretive to Dialog's underlying EPS in 2017, the first full year following closing. Dialog anticipates achieving projected annual cost savings of $150 million within two years.

The transaction has been unanimously approved by the boards of directors of both the companies. The current CEO of Dialog, Jalal Bagherli will continue as the Chief Executive Officer and Executive Board Director of Dialog.

With the acquisition, Dialog expects to complement its leadership position in Power Management ICs with a leading portfolio of proprietary and ARM based Microcontrollers in addition to high performance ICs for Connectivity, Touch and Security.