logo-loader

Synaptics shares pop as UK-based Dialog Semiconductor looks to acquire it

Last updated: 14:19 20 Jun 2018 BST, First published: 13:49 20 Jun 2018 BST

iPhone
Synaptics shares are trading sharply higher on news of the acquisition

Synaptics Inc shares (NASDAQ:SYNA) are still soaring in pre-market trade in the wake of news that Dialog Semiconductor PLC (XETRA:DLG) is in discussions to acquire the San Jose, California-based company.

The acquisition of Synaptics, which makes touch screens and touch pads as well as fingerprint sensors, would allow the UK-based Dialog Semiconductor to pare back its exposure to Apple Inc (NASDAQ:AAPL, its largest customer.

Synaptics shares traded 11.6% higher at US$54.50 in pre-market trade on the news while Dialog shares were flat at 14.86 euros in European trade.

READ: How long can tech companies support the market rise?

Apple is reported to have cut back its orders from Dialog for chips that are utilized in its iPhones, putting pressure on the technology company’s revenue, according to a Bloomberg report.

While Dialog's board is knee-deep in due diligence and detailed discussions about an acquisition, "no assurance can be given that any transaction will be agreed," according to a company statement.

If a deal gets done, it would be paid for primarily in cash as well as some debt. 

Craig-Hallum analyst Tony Stoss noted that Synaptics recently rejected Dialog's $59 per share all-cash bid, according to a report in business website TheFly.com.  Stoss also wrote that Synaptics would likely consider an offer closer to $80 per share, which he believes Dialog is unlikely to finance, TheFly reported.

Caledonia Mining tackles 2023 challenges with optimism for 2024 as it...

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance...

1 hour, 7 minutes ago