Benzinga | Aug 30, 2021 09:42AM EDT

Synaptics To Acquire DSP Group At 18% Premium

* 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.