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Synaptics To Acquire DSP Group At 18% Premium

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  • Synaptics Inc (NASDAQ: SYNA) agreed to acquire voice and wireless chipset solutions provider DSP Group Inc (NASDAQ: DSPG) in an all-cash transaction of $22 per share.

  • The purchase price implies a 17.9% premium to DSP's Friday closing price of $18.66.

  • The combination is likely to generate annual run-rate synergies of $30 million and is immediately accretive to Synaptics' non-GAAP earnings.

  • Synaptics will finance the acquisition via a combination of cash on hand and debt. The transaction will close by the end of CY21.

  • DSP Group's SmartVoice products will help Synaptics create a complete portfolio to serve existing customer needs and address the significant future market.

  • Additionally, the combination further strengthens Synaptics' wireless connectivity portfolio by adding DECT Ultra Low Energy (ULE), enabling a fully-featured intelligent home security solution.

  • Synaptics held $836.3 million in cash and equivalents as of June 30.

  • Price Action: DSP shares traded higher by 17.10% at $21.85 in the market session on the last check Monday.

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