I'm surprised the stock is going up. Since Apple is buying the tech and best people from the company doesn't that confirm that once the process is complete over the next 2 or so years that they will be able to do it all in house?
These are extremely likely the people that Dialog had primarily assigned to doing products for Apple anyway. They are 'best' primarily in their skill at being familiar with the specific product Apple wanted to buy. They aren't necessarily the best at the other products in Dialog's portfolio. With $40-60M of that $300M Dialog could do some buying of 'acquisition hire' talent themselves that doesn't overlap with the Apple business they moved out of.
The stock price is going up because Dialog said that they would do an "up to 10%" buyback of the stock. The stock is going to go up once Dialog gets that cash. 10% probably not (scale iinear with drop of sales), but 3-4% probably. When Dialog's stock dips too much once they get the cash, the company will buy it up. So there will be a 'floor' under the stock for at least 1-2 years once the deal completes ( presuming Dialog doesn't screw up its other businesses/products. )
The catch 22 for Dialog was that Apple was such a big customer that they largely sucked up tons of time and focus. That is nice up until the point where can't complete being a well rounded company. (e.g., all those 300 folks working on Apple only projects don't have time to work on anything else. ) The other problem is that Apple has so much cash they could just walk away with no payment ( it would cost more but not huge problem for Apple).
Apple probably won't do 'all' of the work (Dialog got contracts for new chips in other areas). What Apple is probably buying is the power management that they either have already put into the SoC (system on a chip) or want to. There will be other peripheral projects that probably still use some discrete components because Apple won't build a custom SoC for everything themselves.
600 million is great payout but assuming the 1/4 other business won't be enough to sustain them after no?
300M of that is pre-payment for product. Dialog has to have that product made and shipped. A large chunk of that will go to those contractors. Another chunk can also go into creating the products if there is anything new (e.g., in year 2-3) . Dialog doesn't have to worry about floating costs and getting paid by Apple but they do have costs to cover.
That Apple is taking over some buildings (and/or office space) near Dialog facilities should help Dialog cut some costs [ in addition to not having to pay the salaries of those 300 folks. ] This deal is a 'cost transfer' to Apple also. [ just rough back of envelope: 300 folks at $100k per year is $30M/yr ]