Dialog Semiconductor plc has acquired Creative Chips GmbH, a maker of integrated circuits for the industrial internet of things (IIoT).
Creative Chips is a fabless semiconductor company that creates industrial Ethernet and other mixed-signal ICs. For Dialog, the acquisition will give the company a portfolio of core IC products and a library of analog, digital and RF technologies.
Because both companies are fabless semiconductor companies, Dialog said it will be able to scale operations, product development and IC resources to address new opportunities that happen in the IIoT market.
Creative Chips expects to generate about $20 million in 2019 with a revenue growth of 25%.
The acquisition will be made through an all-cash deal of about $80 million with an additional $23 million contingent based on 2020 and 2021 results.
