Apple chipmaker Dialog Semiconductor predicts double-digit growth after $600m deal

British chipmaker Dialog Semiconductor said it is expecting revenue growth for the rest of the year to be in the mid-teens, after it closed a deal with Apple to the tune of $600m (£462.3m) last month.

Apple will gain some patents and a team of engineers from the chip designer as part of the transaction, and cements a three-year contract for Dialog to continue building chips for its iPhone and iPad products.

Apple currently accounts for three-quarters of Dialog's total sales, with today's news reflecting healthy growth for the rest of the business as Dialog prepares itself for a future with less of a focus on the Californian giant.

"We are not going to fall off a cliff," chief executive Jalal Bagherli told Reuters, as overall revenues for 2019 seem set to remain close to this year's forecast of $1.46bn.

Shares in Dialog had risen more than five per cent as markets closed in Frankfurt today, where the company is listed.

Around half of the proceeds of the Apple deal is expected to go towards running the business, with the rest available to be put towards takeovers or share buybacks.

Dialog said yesterday it would spend up to €150m (£131.8m) on buying back nearly a tenth of its shares.