- It would be for approximately $250 million in an all-cash transaction
- The transaction, which has been approved by the board of directors of Synaptics
Synaptics Incorporated has announced the signing of definitive agreements under which Synaptics will acquire certain assets and manufacturing rights associated with the wireless IoT business of Broadcom. It would be for approximately $250 million in an all-cash transaction. Under the terms of the agreements, Synaptics will acquire certain rights to Broadcom’s existing Wi-Fi, Bluetooth, and GPS/GNSS products and business in the IoT market and future roadmap devices designed in advanced process nodes.
Synaptics said that it expects the transaction to add approximately $65 million in current annualisd sales and provide significant revenue growth potential. The transaction is expected to be immediately accretive to Synaptics’ non-GAAP gross margins and non-GAAP earnings post-close.
Expected to close in Synaptics’ first quarter of fiscal year 2021
Michael Hurlston, president, and CEO, Synaptics said, “Expanding our offering in the high growth IoT market has been one of the major focus areas for Synaptics and the addition of best-in-class wireless connectivity technology to our portfolio significantly enhances our overall position. This acquisition complements Synaptics’ ability to sell into a broad range of devices such as IP cameras, smart displays, speakers, home automation, and gaming consoles – all of which require cutting-edge technologies including Wi-Fi 6 and 6E, Bluetooth 5.2 and GPS L5.”
The transaction, which has been approved by the board of directors of Synaptics. It is expected to close in Synaptics’ first quarter of fiscal year 2021, subject to customary closing conditions. The company expects to finance the transaction from its existing on-hand cash balance and is not subject to any financing conditions.