By Stephen Nakrosis

 

Synaptics Inc. said Tuesday it plans to acquire assets and manufacturing rights associated with the wireless IoT business of Broadcom for about $250 million in cash.

Under the terms of the deal, 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 company said.

Synaptics also said the deal is expected to immediately add to its non-GAAP gross margins and non-GAAP earnings post-close, and expects it will add about $65 million in current annual sales and provide significant revenue growth potential.

Synaptics expects the deal to close in its first quarter of fiscal 2021.

 

--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

 

(END) Dow Jones Newswires

July 07, 2020 16:52 ET (20:52 GMT)

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