Get Rid Of Apple Dependency Syndrome, Dialog Or Merge With Synaptics.

Abstract: Dialog confirmed in a statement on Tuesday (June 19th) that it was discussing the merger with Synaptics.
Collecting microgrid news, Dialog confirmed in a statement on Tuesday (June 19th) that it was discussing the merger with Synaptics.

Dialog said that any transaction would be mainly based on the company's balance sheet and the cash payment of debt. Synaptics shares were suspended on Tuesday when the deal was extended. At present, the market value of Synaptics is about 1 billion 300 million pounds, and Dialog is 1 billion.

In June 9th, it has been reported that between Dialog and Synaptics explore the merger negotiations will continue, but in the end could reach a deal, still unable to determine. The news, early in March this year, Synaptics has declined $59 per share offer, its highest price was around $48 A share, according to the calculation of the time of the purchase price should be around $2 billion.

It is noteworthy that, as the world's largest IC provider of smart phone power management, Dialog occupies 20% of the world's power management chip market. Many domestic mobile phone brands such as HUAWEI, millet, Meizu, music, cool, Jinli, OPPO, TCL and so on have adopted Dialog power management chip.

Among them, apple contributed about Dialog 3/4 revenue, Dialog said last month that Apple plans to cut the bill, and expected revenue will be cut by 5%. The merger with Synaptics will help to get rid of its dependence on Apple orders and speed up the growth of IOT business and enhance the competitiveness of the mobile market.

However, in April last year, the industry came news that Apple will begin to give up the Dialog power management chip in 2019 to the power management chip research, affected by this news, the share price plummeted Dialog.

Since the beginning of this year, Dialog has also strengthened cooperation with other manufacturers. In March 9th this year, Dialog exhibition and sharp to establish a strategic partnership to provide a highly integrated mixed signal Dialog power management technology for the global mainstream market for show sharp LTE chip platform.

In the first quarter of this year, Dialog revenue reached 244 million yuan, an increase of 23% compared to the same period last year, but net profit fell by only 25% US $17 million 400 thousand.

Also worth mentioning is that as apple seeks to design their own chips and components will continue to increase, since Imagination and Dialog have been abandoned by apple, Credit Suisse analyst said the company out of the next is likely to be Synaptics.

However, compared to Dialog, Synaptics is not very dependent on apple. In June last year, Synaptics also acquired Marvell multimedia business and com, and entered the multimedia and voice field. In addition, this year's Synaptics fingerprint has also been used by many domestic mobile phone factories. (proofreading / Luo Ming)