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 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%.
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