The acquisition includes some of the British company's patents and facilities, and will also see as many as 300 computer-chip engineers join the Apple team.
In a statement, Johny Srouji - Apple's senior vice president of Hardware Technologies - explained: "Dialog has deep expertise in chip development, and we are thrilled to have this talented group of engineers who've long supported our products now working directly for Apple.
"Our relationship with Dialog goes all the way back to the early iPhones, and we look forward to continuing this long-standing relationship with them."
Although Apple isn't buying Dialog outright, the deal does mean that the tech giant will be gaining 16 percent of its total workforce.
Earlier this month, meanwhile, it was revealed that the Apple Watch Series 4 was crashing due to a Daylight Saving Time bug.
Owners of the model in Australia experienced crashes and reboots due to a bug in the Infrograph Activity complication, which resulted in the device getting stuck in a reboot loop.