- Synaptics (NASDAQ:SYNA) has revised its guidance for the second quarter of fiscal 2022 to reflect the contribution of its newly acquired business, DSP Group.
- The acquisition, which was previously announced on August 30, was completed today. The deal brings together two companies specializing in AI, voice processing, and wireless technologies.
- Synaptics acquired DSP Group for ~$549M in cash and funded the transaction with the proceeds from a new 7-year $600M senior secured term loan issued under its existing credit facility.
- The deal is likely to be immediately accretive to Synaptics' non-GAAP EPS. The company has raised its FQ2 guidance to include DSP Group's contribution and now expects: revenue of $410M to $430M (vs. consensus of $405.95M and prior guidance of $390M to $420M); Non-GAAP EPS of $3.00 to $3.20 (vs. consensus of $3.07 and prior guidance of $2.90 to $3.20); and Non-GAAP Operating Expense of $96M to $98M (prior guidance of $90M to $93M).
- Non-GAAP Gross Margin outlook has been kept unchanged at 58.5% to 59.5%.
- Previously (Nov. 05): Synaptics sets record margin with upside outlook; shares up 7%