Apple shares are higher in the US Wednesday, as it has agreed a deal with one if its major chip makers, Dialog Semiconductor, to buy patents and staff in the largest such deal for the iPhone maker. The deal also includes long-term supplier contracts for Dialog Semiconductor with the US tech giant.
By 1450 BST, Apple shares were 0.83% higher at $218.15. The stock has been mainly lower, in recent weeks.
Apple, Dialog Semiconductor deal
Apple has agreed to buy some digital iPhone tech, patents and staff from Dialog Semiconductor, for $600 million. Dialog manufactured chips have been a core part of the iPhone since the first generation were made and this deal will help bring Apple more of the manufacturing process and knowledge in-house.
Following the agreement, at least 300 Dialog staff will join Apple from sites in Swindon, UK, Livorno, Italy and Nabern and Neuaubing, in Germany.
“Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who’ve long supported our products now working directly for Apple,” said Johny Srouji, Apple’s senior vice president of Hardware Technologies.
“Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them,” Srouji added.
The transaction between the two businesses is expected to complete in the first half of 2019.
Dialog shares rose sharply on the news, as it said the deal won’t affect its 2018 revenues and will allow it to develop in other areas, including the IoT, while building even deeper ties with Apple.
“This transaction reaffirms our long-standing relationship with Apple, and demonstrates the value of the strong business and technologies we have built at Dialog,” said Dialog’s CEO, Jalal Bagherli.
“We believe that this transaction is in the best interests of our employees and shareholders who will benefit from a business with enhanced focus, strong growth prospects and additional financial flexibility to invest in strategic growth initiatives,” he added.