Synaptics Set to Acquire Rights to Broadcom's Wireless IoT

Synaptics recently announced that it has signed definitive agreements to acquire certain assets and manufacturing rights associated with the wireless IoT business of Broadcom for about $250 million in an all-cash transaction. Under the reported 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 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’ 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,” 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, subject to customary closing conditions, according to the release. Synaptics said it expects to finance the transaction from its existing on-hand cash balance and is not subject to any financing conditions.