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Atmel Corporation (NASDAQ:ATML) To Be Acquired By Dialog Semiconductor For $4.6 Billion

Atmel Corporation (NASDAQ:ATML) recently announced a takeover deal with Dialog Semiconductor Plc. The former shall be acquired by the latter in a transaction worth approximately $4.6 billion. The deal will allow Dialog Semiconductor to expand its client reach as the daily objects are gradually becoming a part of the Internet.

 About the deal

  1. According to Bloomberg, the deal is worth $4.6 billion.
  2. The investors at Atmel Corporation will receive $4.65 in cash for the stock, along with 0.112 of Dialog American depository share.
  3. The deal valued Atmel Corporation’s share at a rate of $10.42 apiece. This is an upscale of 43% than its stock’s last closing rate.
  4. The deal shall be finalized in the Q1 of next financial year.
  5. The board of Atmel Corporation as well as Dialog Semiconductor Plc agreed to the deal unanimously.

Atmel was on the list of others too

In August 2015, Atmel Corporation had announced that the board of company was looking for strategic options in the further course of time. According to Bloomberg, another company, China Electronics Corp also held dialogues with Atmel Corporation (NASDAQ:ATML) in order to acquire it. This however remained stuck at the preliminary conversations only.

Agreeing to the point of competition over acquisition, the Cheif Executive Officer at Dialog Semiconductor, Jalal Bagherli said that the company had to beat other bidders in order to acquire Atmel Corporation.

Dialog trying to position itself in the Internet of Things Era

Dialog Semiconductor, provider of chips to iPhones and iPads at Apple, said that Atmel will add complementary products in its portfolio for the automotive market. Also, Atmel’s inclusion on board will help Dialog in expanding its portfolio in connection with more important industry, i.e., the Internet of Things (IoT). This will create a comprehensive company worth $2.7 billion, in terms of yearly revenue.

In a telephonic conversation with Bloomberg, Mr. Bagherli explained that the computing era has almost been crossed and the mobile era is at its zenith. What the companies are about to enter is the Internet of Things era, which is why, most of the companies are planning to create a base already. Positioning at this era is vital and of more importance to the future of companies.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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