Synaptics Has Broken Down, And Dialog Still Needs To Find A New Way Out

Collecting microgrid news, we reported in June that Dialog is discussing merger with Synaptics. However, according to the latest news, the merger has failed.

On Tuesday, Dialog said it had ended its merger with Synaptics, but gave no reason, Reuters reported. Synaptics is not prepared to make any further comments on the negotiations.

In August 1st, the news was confirmed by Synaptics. Synaptics announced that it had terminated the M & A negotiations with Dialog.

One reason, according to people familiar with the matter, is that one of the reasons for the breakdown may be Synaptics's hesitation on the terms and conditions of mergers and acquisitions, and not satisfied with the terms and prices of the acquisition.

In addition, the person familiar with the matter said that the recent announcement by Qualcomm of the United States to abandon the acquisition of NXP, Synaptics and Dialog acquisition between the failure of one reason. The two companies are worried about whether China will approve the deal.

Synaptics shares plunged 13% after the news, returning overnight to a year ago, when confused Synaptics investors sold shares like crazy.

Rick Bergman (Rick Bergman), President and CEO of Synaptics, said: "Synaptics is the global leader and technological innovator of the industry, and business has spread over a number of high growth markets. Many industry enterprises' interest in Synaptics also highlights the great value of the company. We are very confident in our strategic direction and are excited by the great opportunities we face. We have the ability to continue to be an independent growth company, will continue to be diligent and responsible for the shareholders to create outstanding long-term value.

For Dialog, the failure of the acquisition is not good news.

Dialog has been the main supplier of Apple power management chip, and has been Apple's orders since then. And there are signs that Apple will be heavily influenced by its own power management chip, Dialog.

In order to reduce dependence on single customers, Dialog just started the idea of merger and acquisition, hoping to increase the diversity of products.

Since the beginning of this year, Dialog has also strengthened cooperation with other manufacturers. In March 9th this year, Dialog established a strategic partnership with the exhibition, and Dialog will provide a highly integrated hybrid signal power management technology for the LTE chip platform of the world's mainstream market.

Although Dialog's revenue reached $244 million in the first quarter of this year, up 23% from a year earlier, net profit fell 25% to just $17.4 million.

Compared to Dialog, Synaptics is not highly 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.

Prior to that, Dialog has admitted that the company's performance is affected by Apple's hack, and revenue this year will fall by 5%. The failure of Synaptics acquisition will force Dialog to find new ways to fill the revenue gap. (proofread /Aki)