Dialog agrees to buy Atmel for $4.6B

Post transaction, it is projected that Atmel shareholders will own approximately 38 per cent of the combined company. The transaction would result in a capital structure with leverage of approximately 3x Net Debt/Estimated LTM EBITDA at closing. Dialog expects to continue to have a strong cash flow generation profile and have the ability to substantially pay down the transaction debt approximately three years after closing.

Jalal Bagherli will continue to be the CEO and executive board director of Dialog. Two members of Atmel's existing Board will join Dialog's Board following closing.

This deal follows a series of synergies in a contracting semiconductor industry. In May, Avago Technologies agreed to buy Broadcom for $37 billion, followed by Intel's $16.7 billion deal to acquire Altera.

- Stephen Padilla

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