Dialog Semiconductor to acquire Adesto Technologies

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Dialog Semiconductor is to acquire Adesto Technologies, a provider of ICs and embedded systems for the Industrial Internet of Things (IIoT) market, in a deal that values the business at $500million.

The acquisition of Adesto will help to accelerate Dialog’s expansion into the growing IIoT market that enables smart buildings and industrial automation (Industry 4.0). Adesto, which is headquartered in Santa Clara, California, has 270 employees and an established portfolio of industrial solutions for smart building automation that complements Dialog’s manufacturing automation products. Adesto’s solutions are sold across the industrial, consumer, medical, and communications markets.

“This acquisition substantially enhances our position in the Industrial IoT market,” said Jalal Bagherli, CEO of Dialog. “Adesto’s established strength in connectivity solutions and highly optimised products for building and industrial automation perfectly complements and adds scale to our Industrial IoT portfolio from the recently acquired Creative Chips. Adesto’s deep customer relationships, comprehensive system expertise, and proprietary technology will deliver enhanced value for Dialog customers.”

“Together with Dialog, we are positioned to create unique Industrial IoT solutions through the integration of our best-in-class technologies for today’s increasingly connected world,” added Adesto’s CEO, Narbeh Derhacobian. “We are extremely pleased to join Dialog to bring more value to our combined customer base.”

The two company's complementary product portfolios will service a broad customer base in growth segments of the industrial market and enables increased cross-selling.

According to Dialog the acquisition will:

  • scale Dialog’s IIoT sector capabilities by combining industrial connectivity, smart metering and building automation solutions, and access to more than 5,000 customers, the majority of which are new for Dialog
  • complement Adesto’s industrial wired connectivity portfolio with Dialog’s wireless portfolio (BLE, Wi-Fi) for smart building and industrial applications. Cloud-connectivity adds further differentiation to Dialog’s existing Industrial solutions
  • enable full system solutions for wearables, hearables, and other IoT applications by combining Adesto’s low-power specialty memory products with Dialog’s BLE & Wi-Fi connectivity and True Wireless Stereo (TWS) Audio ICs
  • unlock future growth in the Automotive market by qualifying Adesto’s specialty memory products by leveraging Dialog’s established Automotive production and test flow. Additionally, these products address the emerging, fast-growing Artificial Intelligence (AI) segment
  • add engineering and design scale to expand Dialog’s existing custom IC business making Dialog one of the largest custom analogue mixed-signal semiconductor providers