Synaptics acquires DisplayLink for USD 305 million

Synaptics has announced that it will acquire DisplayLink. With this, the company wants to increase its market share in the video interface market. Synaptics will pay $ 305 million for the company, which equates to approximately $ 264 million.

Synaptics announces the acquisition on its website. The deal is expected to be consummated in the first quarter of 2021. The purchase amount will be paid in a all-cashtransaction, so that Synaptics is not dependent on loans or other financing. The acquisition is expected to generate approximately $ 94 million in annual sales.

DisplayLink claims to make software and hardware that allow devices such as laptops or tablets to be connected to monitors, for example by means of USB or WiFi. For example, the company’s technology is used in docking stations, which are supplied to Dell, HP and Lenovo, among others. The company also makes hardware for USB monitors and wireless VR products. According to Synaptics, support for 8k and 10k screens is on DisplayLink’s roadmap, among other things. Support for USB 4 is also expected.

The CEO of Synaptics writes that the demand for docking and castingproducts for display screens is growing significantly within companies. That would be due to various market trends, including working from home. Partly for this reason, Synaptics would have acquired the company. Earlier this month, Synaptics acquired Broadcom’s wireless IoT division for $ 250 million.