Dialog Semiconductor Plc, which makes chips for Apple Inc.’s iPhone and iPad, agreed to buy Atmel Corp. for $4.6 billion in cash and shares to diversify its customer base and add products as more everyday objects become connected.

Dialog had been looking to expand its industrial offerings since its talks broke off a year ago to merge with Austria’s AMS AG, which made sensors. “By bringing together our technologies, world-class talent and broad distribution channels we will create a new, powerful force in the semiconductor space”, Jalal Bagherli, CEO of London-based Dialog, said a news release issued early Sunday.

Worldwide semiconductor mergers and acquisitions (M&A) reached $31 billion a year ago , the most since 2011, according to Thomson Reuters data.

Reuters was first to report in June that Atmel had hired investment bank Qatalyst Partners to advise it on a sale process.

Dialog said Sunday that shareholders at Atmel would be given $4.64 in cash as well as 0.111 of a share of Dialog semiconductor for every common stock share of Atmel, equal to $10.42 a share at Atmel based on the closing price of Dialog on September 18. Following the transaction, Atmel shareholders will own about 38 percent of the combined group, Dialog said.

Dialog announced it was planning to pay for his deal through cash, debt of $2.2 billion and 49 million shares of Dialog American Depository. The takeover will likely boost Dialog’s underlying earnings starting in 2017 and allow the company to save $150 million within two years, it said. Atmel financial adviser was Qatalyst Partners and its legal adviser was Jones Day.