Synaptics to buy DSP Group for $22 per share; deal immediately accretive to earnings

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• Synaptics Incorporated (NASDAQ:SYNA) and DSP Group (NASDAQ:DSPG) inks an agreement, under which Synaptics acquires DSP Group at $22.00 per share in an all-cash transaction.
• DSP Group is a global provider of voice and wireless chipset solutions for converged communications.
• "DSP Group's expertise in SmartVoice and ULE wireless solutions, coupled with Synaptics' leadership position in far-field speech recognition and IoT directed Wi-Fi/BT combos enables us to deliver increasingly differentiated solutions to our combined customer base, while positioning us to lead the transition to AI enabled devices at the edge of the network."
• The combination is anticipated to generate annual run-rate synergies of $30 million for the new entity to be realized within 12 months of closing and is immediately accretive to Synaptics' non-GAAP earnings.
• The transaction will be funded through a combination of cash on hand and a fully committed, incremental debt financing arrangement with a projected close by the end of the calendar year 2021, subject to necessary approvals.
• The transaction is unanimously approved by the boards of directors of both companies.
• SYNA flat, DSPG +2.5% premarket.