Synaptics to Acquire Rights to Broadcom’s Wireless IoT Connectivity Business
July 07 2020 - 4:05PM
Synaptics® Incorporated (Nasdaq: SYNA) today announced the signing
of definitive agreements under which Synaptics will acquire certain
assets and manufacturing rights associated with the wireless IoT
business of Broadcom (Nasdaq: AVGO) 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 as
well as future roadmap devices designed in advanced process nodes.
The acquisition further strengthens and accelerates Synaptics’
position in the fast-growing consumer IoT market.
Synaptics expects the transaction to add approximately $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. Synaptics expects to finance the transaction from its
existing on-hand cash balance and is not subject to any financing
conditions.
Webcast and Conference Call information:
Synaptics will host a teleconference and webcast to discuss the
transaction today July 7, 2020 at 2:00 p.m. Pacific Time. To access
the call dial 888-394-8218 and enter access code 5797334.
Supplementary slides and a live and archived webcast of the
conference call will be accessible from the “Investor Relations”
section of the company’s website at
https://investor.synaptics.com/.
About Synaptics: Synaptics is the pioneer and
leader of human interface solutions, bringing innovative and
intuitive user experiences to intelligent devices. Synaptics’ broad
portfolio of touch, display, biometrics, voice, audio, and
multimedia products is built on the company’s rich R&D,
extensive IP and dependable supply chain capabilities. With
solutions designed for mobile, PC, smart home, and automotive
industries, Synaptics combines ease of use, functionality and
aesthetics to enable products that help make our digital lives more
productive, secure and enjoyable. (Nasdaq: SYNA). Join Synaptics on
Twitter, LinkedIn, and Facebook, or visit www.synaptics.com.
Synaptics, and the Synaptics logo are trademarks of Synaptics in
the United States and/or other countries. All other marks are the
property of their respective owners.
For further information, please contact:
Public Relations David Hurd Synaptics
david.hurd@synaptics.com
Investor Relations Jason Tsai Synaptics
jason.tsai@synaptics.com
Forward-Looking Statements This press release
contains forward-looking statements that are subject to the safe
harbors created under the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended. Forward-looking
statements give our current expectations and projections relating
to our financial condition, results of operations, plans,
objectives, future performance and business, including our
expectations regarding the proposed transaction between Synaptics
and Broadcom, the expected timetable for completing the transaction
and the potential benefits of the transaction, and can be
identified by the fact that they do not relate strictly to
historical or current facts. Such forward-looking statements may
include words such as “expect,” “anticipate,” “intend,” “believe,”
“estimate,” “plan,” “target,” “strategy,” “continue,” “may,”
“will,” “should,” variations of such words, or other words and
terms of similar meaning. All forward-looking statements reflect
our best judgment and are based on several factors relating to our
operations and business environment, all of which are difficult to
predict and many of which are beyond our control. Such factors
include, but are not limited to: the possibility that various
conditions to the consummation of the proposed transaction between
Synaptics and Broadcom will not be satisfied or waived; the ability
to successfully integrate the acquired business into our portfolio;
the failure to realize the anticipated benefits of the transaction;
the ability to successfully integrate the acquired business into
our portfolio; the risk that our business, results of operations
and financial condition and prospects may be materially and
adversely affected by the COVID-19 pandemic and that significant
uncertainties remain related to the impact of COVID-19 on our
business operations and future results, including our fourth
quarter fiscal 2020 business outlook; the risks as identified in
the “Risk Factors,” “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Business”
sections of our Annual Report on Form 10-K for the fiscal year
ended June 29, 2019 (including that the impact of the COVID-19
pandemic may also exacerbate the risks discussed therein); and
other risks as identified from time to time in our Securities and
Exchange Commission reports. Forward-looking statements are based
on information available to us on the date hereof, and we do not
have, and expressly disclaim, any obligation to publicly release
any updates or any changes in our expectations, or any change in
events, conditions, or circumstances on which any forward-looking
statement is based. Our actual results and the timing of certain
events could differ materially from the forward-looking
statements.
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