This week, Synaptics announced that it will acquire Broadcom’s wireless IoT business – including assets and manufacturing rights – for approximately $250 million in an all-cash transaction.
The $250 million agreement between the two companies lets Synaptics acquire certain rights to Broadcom’s existing IoT technology as well as “future roadmap devices designed in advanced process nodes”. Synaptics expects that the deal will bring the company approximately $65 million per year in sales and also provide “significant” growth potential. The company said that it hopes that the acquisition will accelerate its position in the consumer IoT market.
“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 acquisition is expected to finish in Q1 of the 2021 fiscal year. Synaptics said that it will provide the payment of $250 million from its existing on-hand cash balance – meaning that the company doesn’t need to take a loan to finance the deal.
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KitGuru Says: This was an acquisition that flew under the radar, but a big, $250m deal has now been reached. Now regulator approval is needed before the deal officially closes in the months to come.