Dialog buys wireless, VoIP chip firm

LONDON – Power management IC firm Dialog Semiconductor plc has announced it has acquired SiTel Semiconductor BV, a developer of digital cordless phone and voice-over-IP chips for $86.5 million.

The acquisition has been funded with existing cash reserves and Dialog (Kircheim/Teck, Germany) paid a net cash sum of $84.5 million to previous owner U.K.-based private equity firm HgCapital.

The move adds short-range wireless connectivity and VoIP to Dialog's technology portfolio. Sitel's customers include Gigaset, Panasonic, Microsoft, Plantronics and LG Ericsson.

Sitel ('s-Hertogenbosch, The Netherlands), with approximately 140 employees, was a profitable business in 2010 with revenues of $116.9 million, of which approximately 90 percent came from standard products.

Sitel's VoIP-based internet connectivity and short–range wireless capabilities serve a number of established applications, In addition the combination of provides a potential platform for wireless smart home networked devices either for medical, social support, or consumer applications.

"We see the acquisition as highly complementary to our existing business and it will allow Dialog to address adjacent emerging connectivity markets in a compelling way," said Jalal Bagherli, CEO of Dialog Semiconductor, in a statement. “The acquisition adds an established team of nearly 100 engineers, including expertise in low power RF. Dialog now benefits from a differentiated technology portfolio and an extremely competitive platform for our customers, leveraging both our superior power management technology with low power short-range wireless technology,” he added.

"We are proud of the many milestones and technology firsts Sitel has achieved in the CMOS wireless single chip field," said Asmund Tielens, CEO of Sitel in the same statement. "By leveraging Dialog's market leadership, I am confident we can drive adoption of wireless connectivity into this burgeoning consumer portable market,” he added.