Synaptics Incorporated (SAN JOSE, Calif.) announced a definitive agreement acquires DSP Group (HERZLIYA, Israel) for a total anount of $580 million. DSPD holds Cash, deposits and marketable securities of $130 million, which implies enterprise value of approximately $450 million. The transaction is subject to DSP Group shareholder approval, and is projected to be completed by the end of 2021.
Founded in 1987, DSP Group provides DECT/ULI connectivity chips, DSP solutions for voice processing, VoIP terminals, sensors and AI and application processors for the unified communications markets. DSPG’s revenues in 2020 totaled $114.5 million, a decrease of 3% compared with the revenues of $117.6 million in 2019. Valued approximately $7.3 billion on NASDAQ, Synaptics main focus today is providing semiconductor solutions to the IoT/IoAT marketys.
It recently announced Low Power Edge AI initiative, targeting the growing market of TinyML units, that is expected to reach 2.5 billion by 2030 (ABI Research). It said that the addition of DSP Group’s SmartVoice products to Synaptics’ Katana smart vision platform, “creates a complete portfolio that can both serve existing customer needs and address the significant future market”. In addition, the combination further strengthens Synaptics’ wireless connectivity portfolio by adding DECT Ultra Low Energy (ULE) for the home security market.
“We continue to invest in technologies that tilt our product mix toward IoT applications,” said Michael Hurlston, President and CEO of Synaptics. During the conference call yesterday, Hurlston revealed that Synaptics is planning to merge DSPG’s SmartVoice technology, and Synaptics’ Katana smart vision platform into a single unified chip.
“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.”