December 5, 2021
Paid $ 549 million in cash, including for $ 130 million in company cash. DSPG from Herzliya employs about 350 people, of whom about 200 are in research and development. It will be integrated into Synaptics’ IoT division
Pictured above: Synaptics CEO Michael Harlston. “The two companies complement each other”
Synaptics of San Jose, California, has completed the acquisition of DSPG from Herzliya for approximately $ 549 million in cash. The deal is designed to merge DSPG’s voice processing technologies with Synaptix’s voice activation technologies. “DSP’s capabilities in the field of SmartVoice and low-voltage AI are in line with our long-term strategy to connect smart devices to end networks,” said Synaptics President and CEO Michael Harlston. “The addition of wireless ULE technology and DSP’s VoIP processing solutions also enhance our ability to cross-sell and deliver solutions to the companies’ integrated customer base.”
Synaptics is a chipmaker that provides components for wireless communication systems, computer vision, sound processing, artificial intelligence-based image processing at the network edges and more. In 2020, its sales totaled about $ 1.34 billion. The company is traded on NASDAQ at a market value of about $ 11 billion. DSPG is one of the oldest chip manufacturers in Israel. It was founded in 1987 as an independent company out of DSPC, which was sold to Intel in 1999 for $ 1.6 billion in cash.
DSPG develops and supplies chips for wireless communication and voice processing applications. Its main areas are IoT connectivity and SmartVoice technology chips, which account for about 69% of sales, and DECT / ULE wireless telephony chips, which account for about 31% of sales and are in continuous decline. In 2020, its sales totaled about $ 114.5 million, compared to about $ 117.6 million in 2019. Today, the company employs about 350 people, of which about 200 are in research and development. It will be integrated into Synaptics’ IoT division. The deal gives it a real value of about $ 430 million, since it has about $ 130 million in its coffers.
With the announcement of the deal in August 2021, Synaptics explained that the merger is expected to save about $ 30 million in the first year, following synergy between the two companies in the supply chain, trading costs on the stock exchange (both companies are traded on the NASDAQ) and reduced investment in DECT / ULE technologies. . Hurlstone: “Both companies have an excellent complement: almost all of our largest IoT customers are also DSPG’s largest customers.”
Posted in categories: News, Mergers and Acquisitions, Semiconductors, Israeli Industry
Posted in tags: DSPG, Synaptics
