Synaptics will buy the unit in full for $475 million in cash, or an enterprise value of $515 million. Previous reports said the company was only interested in buying Renasas' 55% stake in the business. Synaptics said the purchase can help grow its addressable market by 1.5x and "accelerate its product roadmap for touch-and-display driver integration."
Separate from the purchase Synaptics raised its fiscal fourth quarter guidance to between $300 million and $310 million from the previous $275 million to $295 million due to better-than-expected mobile and PC demand. Analysts expect revenue of $285.8 million for the quarter.
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TheStreet Ratings team rates SYNAPTICS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SYNAPTICS INC (SYNA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."