Boston, MA 06/13/2014 (wallstreetpr) – After jumping to a record level on Wednesday, the shares of touch sensor marker, Synaptics, Incorporated (NASDAQ:SYNA) took some pause during the Thursday’s trade. This week, the company had announced that it will purchase a 100% stake in Japan’s Renesas SP Drivers, to expand its reach in the PC and mobile display technology market. The deal is valued at $475 million, where Synaptics will finance the transaction with cash along with the debt financing of $300 million.
Getting Back To Apple
The deal is a step to find its route back to Apple Inc. (NASDAQ:AAPL), to which Renesas currently supplies the liquid crystal display chips for its iPhone. It is to be noted that Synaptics itself supplied parts to Apple eight years ago. Following the announcement of the deal, the company’s CEO, Rick Bergman said that they will be happy and thrilled if Apple decides to become their customer again, while they hope to maintain the strong relationship that Apple has with Renesas.
Synaptics, Incorporated (NASDAQ:SYNA) was the one behind the scrolling wheel of Apple’s iPod, but was later dropped out off the supply chain due to Apple’s transition to touch technology. During last month, a Reuters report had pointed out that Apple is interested in buying Renesas SP from its major stakeholder, Renesas Electronics, which now solely goes to Synaptics.
Samsung Already A Client
Other than Apple opportunities, Synaptics is already well positioned in the fingerprint sensors market, occupying 90% of the market. The company’s chips are also used in the Smartphone giant Samsung Electronics Co Ltd Devices, like Galaxy Note 3 phablets and its Galaxy S5.
Apart from the acquisition, Synaptics, Incorporated (NASDAQ:SYNA) also raised its revenue forecast for the fourth quarter from $275-$295 million to $300-310 million, on account of robust sales of PC and mobile products. Additionally, the company also has its price target raised by the Imperial Capital to $95 per share. The research firm has kept the rating as ‘Outperform’.
