Dialog Semiconductor is in early talks to merge with U.S. touch-pad technology company Synaptics Inc, Bloomberg reported on Friday, citing people familiar with the matter.
Dialog has a market value of about 1.15 billion euros ($1.4 billion) while Synaptics, the shares of which jumped as much as 15 percent after the report, is valued at $1.6 billion.
Dialog and Synaptics declined to comment on the report.
Any deal could make Dialog less dependent on orders from Apple. Analysts estimate that Dialog derives more than half its revenue from supplying Apple with power management chips.
The company’s stock has lost nearly 20 percent of its value so far this month after is said that Apple had cut orders for chips for its new iPhone models.
Source: Reuters.com