July 2 (Bloomberg) -- Dialog Semiconductor Plc, the German maker of chips used in Apple Inc.’s iPhone, agreed to buy IWatt Inc. of the U.S., gaining power management technology for tablets and smartphones in a deal worth as much as $345 million.
Dialog, based in Kirchheim, said it will pay about $310 million in cash as well as additional revenue-based payments of as much as $35 million in a statement to the stock exchange today. It expects the acquisition to add to earnings per share in the first quarter after the deal is closed.
The German company, which relies on Apple for more than one-third of its revenue, is diversifying its product portfolio with the purchase of IWatt, which is based in Silicon Valley, California. The deal gives it access to a market that may grow to $11.5 billion by 2015, according to estimates by research Gartner Inc., cited by Dialog in the statement.
“This acquisition underscores Dialog’s strategy to diversify our markets and growth opportunities through select strategic acquisitions,” Chief Executive Officer Jalal Bagherli said in the statement.
Dialog shares rose as much as 5.8 percent and traded 3.2 percent higher at 10.10 euros as of 11:41 a.m. in Frankfurt, valuing the company at 689 million euros ($897 million).
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