Synaptics enters fingerprint ID market with acquisition of Validity
10 October 2013 14:40 GMT

Synaptics enters fingerprint ID market with acquisition of Validity

Synaptics has signed a Definitive Agreement to acquire Validity Sensors. With the acquisition of Validity, Synaptics expects to gain access to the fast growing biometrics market, significantly expanding its market opportunity and underscoring the company's commitment to making smart devices easier to use.

Biometrics and fingerprint sensing is poised for explosive growth as OEMs look to differentiate their products, and consumers demand greater security with seamless ease-of-use. Synaptics believes the acquisition of Validity positions the company at the forefront of this exponential growth opportunity and allows the company to strengthen its portfolio of touch-based technologies with the diversification into fingerprint-sensing capabilities.

Validity's solutions include its LiveFlex fingerprint sensor technology, providing enhanced image quality with high-frequency RF imaging into the live layer of the finger. Synaptics believes Natural ID solutions provide an ideal platform to address the explosive growth of biometric sensing in everything from mobile payment transactions, cloud-based services and enterprise mobile device security.

Synaptics will pay approximately US$92.5 million in stock and cash at the closing plus potential performance payments over a multi-year period for total potential consideration of up to US$255.0 million. The stock component is expected to be in the range of 1.5 million to 2.3 million shares. The acquisition is expected to close in the current quarter, subject to customary closing conditions and regulatory reviews, as necessary.

Synaptics has also announced that it expects revenue for the first quarter of fiscal 2014 to be approximately US$220 million, above the mid-point of its previously provided guidance range of US$210 to US$225 million. In addition, during the first quarter, the company repurchased over 1.2 million shares of common stock or more than 3.5% of shares outstanding and has US$110 million available under its current authorization.