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.