Synaptics agrees to acquire Renesas SP Drivers
TOKYO (Dow Jones) -- Synaptics Inc. said it would buy Renesas SP Drivers Inc. for roughly $475 million, a deal designed to expand its capabilities in chips for mobile devices and personal computers.
The Silicon Valley company on Tuesday also raised its revenue outlook for the current quarter. Its shares rose 18% to $78.50 in after-hours trading.
Synaptics is known for chips that control touch screens, touchpads and fingerprint sensors in smartphones, tablets and laptop PCs.
Renesas SP Drivers is a Japanese company that specializes in chips that manage LCD displays, which can have two million to three million transistors. The company, formed in April 2008, is a joint venture established by Renesas Electronics, Sharp Corp. and Powerchip Group.
Rick Bergman, Synaptics's chief executive, said his company had been working on technology to combine both kinds of functions on a single chip--an industry trend that can make mobile devices lighter and bring other benefits.
Adding technology from the Japanese company, he said, should help create better integrated chips faster. "It is a very natural way to accelerate our roadmap," Mr. Bergman said in an interview.
Synaptics is using Japanese currency in the transaction, which it valued at Yen48.5 billion. Renesas SP Drivers generated revenue of about $650 million for the fiscal year ended in March, Synaptics said.
The deal, expected to close in the fourth quarter of 2014, is expected to immediately add to Synaptics's adjusted per-share earnings.
As part of the announcement Tuesday, Synaptics said it now expects revenue of $300 million to $310 million in the fiscal fourth quarter, up from its previous projection of $275 million to $295 million. Synpatics plans to report results for the period on July 31.