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Synaptics surges as it agrees to buy video compression group DisplayLink for US$300mln

On Wall Street, Synaptics stock rose by US$7.39 or 10.26% to change hands at US$79.42.

Synaptics Incorporated - Synaptics surges as it agrees to buy video compression group DisplayLink for US$300mln

Synaptics Incorporated (NASDAQ:SYNA) saw its stock rise as much as 12% in Tuesday’s early deals after it agreed to acquire video compression specialist DisplayLink Corp in a US$305mln.

It is an all-cash transaction and the company believes the deal will accelerate its Internet of Things strategy.

Synaptics said it expects the acquisition to add around US$94mln in annualized sales and said the deal will be immediately accretive to margins and earnings.

“Several market trends such as work from home (WFH), bring your own device (BYOD) and office hoteling coupled with the growing need for multiple, high resolution displays in enterprises are driving demand for universal docking and casting solutions,” said Michael Hurlston, Synaptics chief executive.

He added: “DisplayLink’s track record of success and strong market validation coupled with Synaptics’ leadership in commercial docking solutions positions us well to capitalize on these trends and deliver compelling solutions to our combined customer base.”

DisplayLink’s compression technology enables universal docking and casting of high bandwidth video from any device to any display using USB, Ethernet or Wi-Fi.

On Wall Street, Synaptics stock rose by US$7.39 or 10.26% to change hands at US$79.42.

Quick facts: Synaptics Incorporated

Price: 104.19 USD

NASDAQ:SYNA
Market: NASDAQ
Market Cap: $3.6 billion
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