Dialog, a provider of highly integrated power management, audio and short-range wireless technologies, announced that it has acquired iWatt, a leading provider of digital power management integrated circuits (ICs), for a cash payment of approximately $310 million, with additional contingent consideration of up to $35 million. This Acquisition enhanced Dialog's leadership in power management for Tablets and Smart phones and promoted Dialog to enter LED Solid State Lighting market, which means that the market competition will be more intense, and the Taiwan manufacturers like Macroblock will be tested.
According to forecast of Gartner, the overall global power management semiconductor market is expected to grow to $11.5 billion by 2015. The acquisition of iWatt provides Dialog with an entry into the following high growth segments of this market.
AC/DC power conversion: The vast majority of the world's electronic devices that plug into an electric wall outlet require the conversion of high-voltage AC power to low-voltage DC. Robust growth in portable device markets including Smart phones, Tablets and Ultra-books is driving the increased need for a new generation of intelligent AC/DC chargers that will be more power efficient, enable a quicker charge time and be available in a smaller form factor.
LED solid state lighting (SSL): The general lighting market is undergoing a transition from traditional incandescent light sources to more energy-efficient technologies, such as LED SSL. LED SSL has many advantages over competing light sources, including lower energy consumption, longer lifetime, and reduced form factor, quality of light emitted and reduced environmental impact. LED SSL adoption is expected to accelerate due to emerging global regulatory mandates and incentives, as well as falling costs from improvement in technology and manufacturing yields.
According to McKinsey, total LED SSL global shipments are expected to grow from 440 million units in 2012 to 2.7 billion units by 2016, resulting in increased demand for iWatt LED SSL ICs.