By Stephen Nellis and Douglas Busvine
SAN FRANCISCO/FRANKFURT (Reuters) – Apple Inc (NASDAQ:AAPL) is buying the power-management technology at the heart of its iPhones in a $600 million deal with Dialog Semiconductor that also secures the German-listed company’s role as a supplier to the U.S. tech giant.
The agreement to acquire patents and people from the Anglo-German chip designer is not only unusual, but also the largest of its kind by Apple, whose last sizeable acquisition was the $350 million purchase of Face ID creator PrimeSense in 2013.
Dialog shares surged as much as 34 percent on Thursday, their most since 2002, as the deal bought the company time to reduce its dependence on Apple – which it expects to account for three-quarters of this year’s sales.
Dialog’s shares had tumbled earlier this year when it said Apple planned to use chips from another supplier.