Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Dialog- AMS Deal Off
The AMS – Dialog merger is off, reports Bloomberg.
The deal-breaker was the valuation, says Dialog which apparently sees itself as more valuable than AMS. having better growth potential than AMS.
AMS had revenues of $502 million last year and has a market cap of $2.3 billion while Dialog had revenues of $903 million and has a market cap of $1.8 billion.
However Dialog is said to have regarded itself as more valuable than AMS because it sees itself as having superior growth potential.
Whereas Dialog grew revenues by around 50% last year, AMS revenues fell slightly.
Dialog is, however, highly dependent on Apple which accounts for 80% of its revenues. AMS only gets 23% of its revenue from Apple.
Under UK takeover rules AMS won’t be able to make an offer for Dialog for six months unless the Dialog board agrees.