FRANKFURT, Oct 7 (Reuters) - Chip designer Dialog Semiconductor DLGS.DE on Monday said it agreed to buy Germany's Creative Chips as part of its push into low-energy connectivity used for devices in the internet of things (IoT).
"The acquisition of Creative Chips is instrumental for Dialog, giving it a strong foothold in the Industrial IoT market, while still highly complementary to Dialog's current mixed-signal business," Dialog CEO Jalal Bagherli said.
Creative Chips is expected to generate sales of about $20 million in 2019, Dialog said, adding revenues were expected to grow by a quarter per year over the next few years. The deal is expected to close during the fourth quarter.
Dialog, whose shares were 1.8% lower in early Frankfurt trade DLGS.F, will pay $80 million for the acquisition, with an additional consideration of $23 million based on revenues targets for the next two years.
The purchase will increase Dialog's sales in the area of wireless low power connectivity, configurable mixed-signal and power management integrated circuits, it said.
(Reporting by Christoph Steitz and Douglas Busvine, editing by Riham Alkousaa)
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