Synaptics snaps up Broadcom’s wireless IoT business
Synaptics Incorporated announced the signing of definitive agreements under which Synaptics will acquire certain assets and manufacturing rights associated with the wireless IoT business of Broadcom for approximately $250 million in an all-cash transaction.
According to the announcement, 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 notes the acquisition strengthens and accelerates its position in the consumer IoT market.
Synaptics expects the transaction to add approximately $65 million in current annualized sales and significant revenue growth potential. The transaction is expected to be immediately accretive to Synaptics’ non-GAAP gross margins and non-GAAP earnings post-close.
“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,” explains 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 be financed from its existing on-hand cash balance, has been approved by Synaptics’ board of directors and is expected to close in Synaptics’ first quarter of fiscal year 2021, subject to the usual closing conditions.
Article Topics
Bluetooth | Broadcom | GPS | IoT | Synaptics | Wi-Fi | wireless
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