Smart City

Smart City Sentinel

Synaptics to Acquire DisplayLink Accelerate IoT Diversification

By Ken Briodagh

In a recent release, Synaptics announced the signing of a definitive agreement to acquire DisplayLink, a provider of high-performance video compression technology, for $305 million in an all-cash transaction. The deal reportedly is expected to close in Synaptics’ first quarter of fiscal year 2021, subject to customary closing conditions, and be financed from existing cash on hand. Synaptics expects the transaction to add approximately $94 million in annualized sales and be immediately accretive to non-GAAP gross margins, non-GAAP operating margins, and non-GAAP earnings post-close.

DisplayLink’s high performance software compression technology is designed to enable universal docking and casting of high bandwidth video from any device to any display using any transport medium like USB, Ethernet or Wi-Fi. For the Enterprise IT market, the solution supports multi-OS environments including Windows, MacOS, ChromeOS and Ubuntu Linux enabling a myriad of devices to dock to multiple high resolution (4K, 8K) displays.

“Several market trends such as work from home (WFH), bring your own device (BYOD) and office hoteling coupled with the growing need for multiple, high resolution displays in enterprises are driving demand for universal docking and casting solutions,” said Michael Hurlston, President and CEO, Synaptics. “DisplayLink’s track record of success and strong market validation coupled with Synaptics’ leadership in commercial docking solutions positions us well to capitalize on these trends and deliver compelling solutions to our combined customer base.”

The DisplayLink acquisition, in addition to the recently announced acquisition of Broadcom’s wireless IoT connectivity portfolio, further accelerates Synaptics’ long-term IoT diversification strategy.

“Synaptics is a recognized leader in video interface solutions and this combination creates an exciting opportunity for DisplayLink to bring greater value to our customers,” said Graham O’Keeffe, CEO, DisplayLink. “Our video compression technology is the perfect complement to Synaptics’ current product portfolio, and the combination of our world-class engineering teams will be able to address both existing opportunities and exciting new use cases.”


Ken Briodagh is a storyteller, writer and editor with about two decades of experience under his belt. He is in love with technology and if he had his druthers would beta test everything from shoe phones to flying cars.

Edited by Ken Briodagh

Editorial Director

SHARE THIS ARTICLE
Related Articles

IoT Time Podcast S.5 Ep.29 EY

By: Ken Briodagh    8/13/2020

In this episode of IoT Time Podcast, Ken Briodagh sits down with Steve Patton, Mobility Sector Leader, EY Americas, to talk about autonomous cars, Dri…

Read More

KORE Webinar to De-Mystify eSIM for IoT

By: Ken Briodagh    8/12/2020

It is critical for any size of business in any market, in any corner of the IoT to learn the ins and outs of the eSIM strategy for fixing many of the …

Read More

The Gotchas: IoT Liabilities

By: Gary Audin    8/12/2020

Who is responsible if there is an error, illness, injury, or financial loss when an IoT problem arises? Who do you sue? Are there regulations that cov…

Read More

CalAmp Renews Contract with Caterpillar for 4G LTE Telematics

By: Ken Briodagh    8/10/2020

CalAmp is extending its relationship with Caterpillar to facilitate the company's expansion of connected assets, including the migration of several ex…

Read More

Getting Patients More Involved with IoT-based Solutions

By: Special Guest    8/10/2020

Advances in IoT technology have led to remote patient monitoring solutions that can help healthcare providers monitor patients while they remain home,…

Read More