Synaptics strengthens position in biometrics space with technology acquisition
The most recent high-profile technology acquisition involves human interface technology solution provider Synaptics and Validity Sensors, based in California, which provides biometric fingerprint authentication solutions for a variety of devices, including phones, tablets and PCs.
Synaptics President and CEO Richard A. Bergman said in a conference call announcing the acquisition that the move would further position Synaptics as the leader in human interface technology. The acquisition is particularly notable in light of Apple's recent release of its latest line of iPhones, which include biometric technology.
As the technology continues to proliferate among consumer electronic devices, companies like Synaptics will be tasked with providing hardware producers with the latest advancements.
Bergman further explained the technology acquisition by noting that advanced biometrics and fingerprint scanning technology could have crossover appeal to companies that operate cloud-based services and produce NFC-outfitted and internet-enabled devices.
Investors and analysts alike lauded Synaptics' acquisition.
"[The deal] provides an opportunity for Synaptics to expand its content opportunity with key smartphone, tablet and PC OEMs," said Pacific Crest Securities' John Vinh. "In particular, we believe Synaptics could benefit, as we anticipate Samsung will be a fast follower of Apple and adopts fingerprint sensing in its high-end smartphones next year. The expectation for earnings accretion in F2015 implies a doubling of Validity revenue to $30 million to $40 million."
Synaptics is likely to continue to make similar technology acquisitions, as it further bolsters its presence in the expanding space of biometrics. As is the case with every technology acquisition, Validity Sensors will also benefit because the two companies share complementary goals.