Why Synaptics Stock Popped Today
Shares of Synaptics (NASDAQ: SYNA) have popped today, up by 12% as of noon EDT, after the company announced yesterday that it would acquire wireless Internet of Things (IoT) assets from Broadcom (NASDAQ: AVGO). The company hosted a webcast after the close to discuss the deal.
Synaptics has agreed to purchase certain assets and manufacturing relationships related to Broadcom's IoT connectivity business for $250 million in cash. Broadcom's current portfolio of Wi-Fi, Bluetooth, and GPS/GNSS products will be included in the transaction, as will future products. Synaptics estimates that the deal will add around $65 million in annualized sales to the top line and be immediately accretive to adjusted gross margin and adjusted earnings per share.
Image source: Synaptics.
Source Fool.com
