Synaptics acquires Broadcom's wireless IoT business for a total of approximately $ 250 million. For this amount, the company will receive Broadcom's existing Bluetooth, GPS / GNSS and Wi-Fi products for the IoT market, as well as its under development devices and established business relationships, as well as a 60-strong engineering team under Synaptics' flag. This is not the first time that Broadcom has gone beyond its IoT business, and four years ago sold its then area-focused division to Cypress Semiconductor.
With the agreement, Synaptics will be able to strengthen its in-house IoT competencies and significantly expand its product offering. and it can streamline its wireless solutions business – which was also fully sold last year. Since then, however, the company has managed to sign a billion-dollar supplier contract with Apple for the next few years, thanks to which it eventually retained the division, shaving its non-vital segments instead.
Although Synaptics is primarily known for its various HID input devices, such as touchpads or fingerprint readers, as AnandTech points out, the company has begun to expand its offering in recent years with a variety of IoT products, including Conexant Systems and Marvell.
The current acquisition paves the way for a number of new product categories for the company, such as IP cameras, smart displays and speakers, or smart home accessories, all of which rely on the above wireless technologies. The Broadcom and Synaptics business is expected to close in the first quarter of 2021, with the latter expecting significant revenue growth in the coming years.
Gellert is Technology Editor at Counting News Media and contributor at other major tech publications. Her interests includes testing new gadgets and reading.