Synaptics Inc. signed a deal to acquire Renesas SP Drivers Inc.
for roughly Yen48.5 billion Japanese ($475 million), a move that
will expand its capabilities as a touch screen controller supplier
to the mobile display market.
Synpatics shares rose 17% to $78 in recent after-hours trading
as the company also raised its fiscal fourth-quarter revenue
outlook.
The company now expects revenue of $300 million to $310 million,
up from its previous projection of $275 million to $295 million.
Synpatics expects to provide more details when it reports its
fiscal fourth-quarter financial results on July 31.
Renesas SP Drivers is a joint venture established by Renesas
Electronics, Sharp Corp. and Powerchip Group in April 2008. Renesas
SP Drivers generated revenue of about $650 million for the fiscal
year ended in March.
The deal, expected to close in the fourth quarter of 2014, is
expected to immediately add to Synaptics's adjusted per-share
earnings.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires