Synaptics Completes Acquisition of Broadcom’s Wireless IoT Business, Accelerating IoT Growth Opportunity
July 23 2020 - 4:02PM
Synaptics Incorporated (Nasdaq: SYNA) today announced that it has
completed the acquisition of assets and manufacturing rights
associated with the wireless IoT business of Broadcom. These
best-in-class Wi-Fi, Bluetooth, and GNSS/GPS technologies expand
Synaptics’ footprint across a broad range of applications including
home automation, smart displays and speakers, media streamers, IP
cameras, and automotive.
“This transaction accelerates our broader strategy of shifting
toward our IoT business and allows for the opportunity to redeploy
our capital to drive top-line growth while increasing profitability
with higher gross and operating margins,” said Michael Hurlston,
president and CEO at Synaptics. “Acquiring this technology, coupled
with the recently announced deal with DisplayLink, gives us greater
depth in our product portfolio and positions us to offer more to
our existing customer base.”
Synaptics also granted equity awards to 51 new employees hired
in connection with the completion of the acquisition. The awards
were granted under Synaptics’ 2019 Inducement Equity Plan in
accordance with Nasdaq Listing Rule 5635(c)(4) as inducements
pursuant to the substitution of equity awards of Broadcom, material
to the new employees entering employment with Synaptics. The
inducement awards consist of an aggregate of 130,921 restricted
stock units (“RSUs”) and an aggregate target of 5,336 performance
stock units (“PSUs”). Subject to the grantees’ continued employment
with Synaptics, the RSUs will vest one-third annually over a
three-year period from grant date, and the PSUs will cliff vest
three years from the grant date based on attainment of certain
organizational financial goals.
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:
Investor Relations Jason Tsai Synaptics
jason.tsai@synaptics.com
Public Relations David Hurd Synaptics
david.hurd@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 transaction between Synaptics and
Broadcom 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 ability to successfully
integrate the acquired business into our portfolio; the failure to
realize the anticipated benefits of the transaction; 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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