SINGAPUR (dpa-AFX) - Synaptics Inc. (SYNA) Tuesday said it has agreed to buy certain assets and manufacturing rights associated with the wireless IoT business of Broadcom (AVGO) for about $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 as well as future roadmap devices designed in advanced process nodes.
Synaptics expects the transaction to add about $65 million in current annualized sales and provide significant revenue growth potential. The transaction is expected to be immediately accretive to Synaptics' adjusted gross margins and adjusted earnings.
'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,' said Michael Hurlston, president and CEO, Synaptics. '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, is expected to close in Synaptics' first quarter of fiscal year 2021.
Synaptics expects to fund the deal from its existing on-hand cash balance.
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