Synaptics to Acquire DisplayLink, Extending market leadership in the video interface

Synaptics Incorporated announced the signing of a definitive agreement to acquire high-performance video compression technology pioneer DisplayLink Corp. for USD 305 million in an all-cash deal. The transaction is expected to close in the first quarter of fiscal year 2021 for Synaptics, subject to usual closing conditions, and to be funded from existing cash on hand. Synaptics expects the acquisition to add around $94 million in annualized revenue and to be instantly accretive to total non-GAAP revenues, non-GAAP operating margins and post-close non-GAAP earnings.

High-performance software compression technology from DisplayLink allows universal docking and casting of high bandwidth video from any device to any display using any carrying medium such as USB, Ethernet or Wi-Fi. The solution supports multi-OS environments for the Enterprise IT market, including Windows, MacOS, ChromeOS and Ubuntu Linux, enabling a myriad of devices to dock seamlessly to multiple high-resolution displays (4K, 8K).

According to Synaptics President and CEO Michael Hurlston, several market trends such as work from home (WFH), bringing your own device (BYOD) and office hoteling coupled with the growing need for multiple, high-resolution displays in businesses drive demand for universal docking and casting solutions. DisplayLink's track record of performance and solid market recognition coupled with Synaptics leadership in commercial docking solutions puts us in a good position to capitalize on those trends and offer compelling solutions to combined client base.

In addition to the previously announced acquisition of Broadcom's wireless IoT networking portfolio, the DisplayLink acquisition further speeds up Synaptics long-term plan for IoT diversification. The combined roadmap is capable of delivering solutions that drive up to four 4 K displays, add support for emerging 8K/10 K displays and the upcoming USB4 standard, and enable high-performance, dynamic wireless video docking and casting in a unique way.

According to DisplayLink CEO Graham O'Keeffe, Synaptics is a recognized pioneer in video interface technologies and this combination provides an exciting opportunity for DisplayLink to add more value to the clients.  DisplayLink video compression technology is the ideal complement to the current product line of Synaptics and the integration of world-class development teams will solve both existing markets and innovative new applications.

Synaptics is the pioneer and leader of human interface technologies, offering intelligent interfaces with creative and intuitive user experience. The broad portfolio of touch, display, biometrics, voice, audio, and multimedia products from Synaptics is built on the company's rich R&D capabilities, extensive IP and reliable supply chain. Synaptics combines ease of use, accessibility and aesthetics with technologies built for the smartphone, Desktop, smart home and automotive industries to enable products that help make our digital lives more efficient, safe and enjoyable.