Synaptics enters licensing agreement with Broadcom, sees accretion

Synaptics (SYNA) announced it has accelerated its Edge AI strategy by signing a definitive licensing agreement with Broadcom (AVGO) that includes Wi-Fi 8, ultra-wideband, Wi-Fi 7, advanced Bluetooth and next-generation GPS/GNSS products and technology for IoT and Android ecosystem. The agreement expands serviceable wireless market to include augmented and virtual reality platforms, Android smartphones, and consumer audio. Additionally, the agreement is expected to add at least $40M in annualized sales and to be immediately accretive to non-GAAP EPS. The all-cash transaction is expected to close on January 30.