Dialog acquires SiTel for $86.5M

Kircheim/Teck, Germany — Dialog Semiconductor plc, a provider of highly integrated power management semiconductor solutions for portable devices, has acquired SiTel Semiconductor B.V. (SiTel), a provider of short-range wireless, digital cordless and VoIP technology.

Under the terms of the transaction, Dialog paid an enterprise value of $86.5 million. The transaction is expected to be accretive to both cash and IFRS earnings per share (EPS) from the third quarter of 2011, and was funded using Dialog’s existing cash reserves, reported the company.

The acquisition adds major global customers in the portable device market, while adding short-range wireless connectivity and VoIP to Dialog’s existing technology portfolio. The deal is expected to significantly expand Dialog’s growth in the wireless personal portable devices market.

Headquartered in the Netherlands, SiTel’s products are found in a broad range of personal portable applications including digital cordless phones, professional wireless headsets, gaming and portable medical devices. Customers include Gigaset, Panasonic, Microsoft, Plantronics and LG Ericsson.

The company’s VoIP technology is increasingly used by leading manufacturers of enterprise and residential VoIP connectivity products, said Dialog. Together, SiTel’s VoIP-based internet connectivity and short-range wireless capabilities provide a platform to enable a new generation of wireless smart home networked devices with direct IP addressability — a fast-emerging market segment, according to the company.