Talks over a possible merger of the mixed-signal chip companies AMS and Dialog Semiconductor plc have failed to reach agreement and been abandoned.
The merger could have created a European company with more than $1.4 billion in annual sales but AMS said in a press release posted Tuesday, July 22, that it has terminated discussions with Dialog Semiconductor and does not intend to make an offer for Dialog Semiconductor. Similarly, Dialog said that, "despite extensive discussions," it has been unable to agree suitable terms and has terminated discussions with AMS AG regarding a possible merger of equals of the two companies.
The talks had been going on for several months, but news leaked out toward the end of June, causing share price movements and forcing the companies to acknowledge the discussions.
Dialog, a fabless chip company with products in mixed-signal, wireless connectivity, and power management, has been on a strong growth curve for several years led by respected CEO Jalal Bagherli. AMS runs a 200mm wafer fab near Graz, Austria, where it manufactures power, optical, and magnetic and RF circuits.
Although the deal was being referred to as a merger of equals, Dialog has about twice the annual sales of AMS. In the release, Dialog said it will continue to execute on its strategy to become a leading provider of analog and mixed-signal semiconductors for such markets as smartphones, tablet computers, solid-state lighting, and the emerging wearable and smart home segments.
"With the end of these discussions, it is business as usual, namely delivering increasing value for our shareholders. We will continue on our profitable growth path -- as demonstrated by our track record -- and build a truly vibrant, global and diversified mixed-signal semiconductor business," Bagherli said in the release.
This article was originally published on EE Times Europe.