Synaptics Acquires Fingerprint ID Provider

The fast-growing biometrics market, which includes fingerprint ID solutions for smartphones and other wireless devices, has "long been of interest" to Synaptics (NASDAQ: SYNA  ) according to its president and CEO, Rick Bergman, and is the basis for today's announcement that Synaptics will acquire Validity Sensors for $92.5 million in stock and cash.

Synaptics already offers smartphone and wireless manufacturers with several touch solutions, according to the company. The deal to acquire Validity Sensors will "strengthen its [Synaptics] portfolio of touch-based technologies with the diversification into fingerprint-sensing capabilities."

Bergman added, "This acquisition is a significant step forward for the company and serves as a proof point of our dedication for continued growth, innovation and commitment to providing the industry's best and broadest portfolio of human interface solutions."

In addition to the initial $92.5 million in stock and cash, the deal calls for "potential performance payments" to Validity based on sales through March  31, 2016, which could bring the total value of the transaction to $255 million, according to Synaptics. The company said the stock portion of the acquisition is expected to include between 1.5 million and 2.3 million newly issued shares. Synaptics currently has 32.34 million shares outstanding.

The transaction is expected to close this quarter, and is subject to standard regulatory and closing conditions. Synaptics' stock closed at $46.23 today, up 1.43%.

 
 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2676004, ~/Articles/ArticleHandler.aspx, 8/29/2014 5:59:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement