Dialog buys low power RF chip designer


Simon Bond

Category: News, Silicon South West
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Dialog Semiconductor in Swindon has bought SiTel , a designer of voice over IP and cordless phone chips in Holland that was a spin off off National Semiconductor.

The deal adds key short-range wireless connectivity and VoIP to Dialog’s existing technology as well as  major global customers in the portable device market, including Gigaset, Panasonic, Microsoft, Plantronics and LG Ericsson. Dialog paid net cash of $84.5m for the business with a turnover of $116m and 140 employees.

“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 Dr. Jalal Bagherli, CEO of Dialog Semiconductor. “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 said.

“Our ultra low power wireless technology, including both innovative proprietary and standards-based solutions has allowed SiTel to become a leader in wireless connectivity,” said Dr. Asmund Tielens, CEO of SiTel.

SiTel Semiconductor was created in 2005 in a $74m management buy-out of National Semiconductor’s Dutch business designing chips for cordless phones, but the history of the company goes back to the late 1980s, when Sierra Semiconductor (now PMC-Sierra) set up its European headquarters in the country designing modem, graphics and Application Specific Integrated Circuits (ASICs). SiTel Sierra as founded as a spin-off in 1994 designing chips for Digital Enhanced Cordless Telephone (DECT), Private Mobile Radio (PMR) and small Private Automatic Branch Exchange (PABX) and was acquired in January 1996 by National Semiconductor.

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