RNECY - Renesas' Acquisition Of Dialog Is A Win-Win

• Dialog announced that it has agreed to sell itself to Japan's Renesas for EUR 67.50 per share, a 20% premium to the pre-deal price.
• Dialog shareholders are getting a "fair" price based upon my expectations for the company's '21 margins, and these shares have long traded at a discount.
• Renesas has meaningful opportunities to leverage Dialog's expertise in power management and connectivity in key markets like autos and IoT.
• The success of past deals (Intersil, IDT) lends credibility to Renesas' synergy targets and rationale for the deal.
• Dialog shares are currently trading at a small discount to the deal price; Renesas shares look undervalued.

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