Why Synaptics Stock Popped Today
Shares of Synaptics (NASDAQ: SYNA) have popped today, up by 8% as of 12:10 p.m. EDT, after the company announced yesterday evening that it will acquire DisplayLink. The deal will strengthen Synaptics' video interface technology.
Synaptics will scoop up DisplayLink for $305 million in cash. The transaction will add roughly $94 million in annualized sales to Synaptics' top line and is expected to be immediately accretive to adjusted gross margin, adjusted operating margin, and adjusted earnings per share. DisplayLink's technology allows devices to be docked and transmit high-bandwidth video using a variety of connectivity mediums.
Image source: Synaptics.
Source Fool.com
