Thursday, 15 June 2017 08:15 AM
LONDON, UK / ACCESSWIRE / June 15, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Synaptics Inc. (NASDAQ: SYNA) and Marvell Technology Group Ltd. (NASDAQ: MRVL). Synaptics, the leading developer of human interface solutions, announced on June 13, 2017, that it has signed a definitive agreement to acquire Conexant Systems, a technology leader in voice and audio processing solutions for the smart home, for $300 million in cash and 726,666 shares of Synaptics' common stock. Synaptics also announced the signing of a definitive agreement to acquire the Multimedia Solutions Business of Marvell Technology, a leading provider of advanced processing technology for video and audio applications and the smart home for $95 million in an all-cash transaction. For immediate access to our complimentary reports, including today's coverage, register for free now at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on SYNA and MRVL. Go directly to your stock of interest and access today's free coverage at:
http://protraderdaily.com/optin/?symbol=SYNA
http://protraderdaily.com/optin/?symbol=MRVL
Synaptics expects the acquisitions to deliver human interface leadership in the consumer IoT segment, in the long-term. Post these acquisitions, the Company expects gross margins to be accretive immediately and expects to increase its total addressable market opportunity from $2.8 billion to $10.3 billion by FY20, advancing by about 38%.
Conexant Portfolio
Conexant is a leading provider of comprehensive, integrated and customizable solutions for hardware and software that offer unrivaled performance for audio and voice applications. Conexant claims to have more than 480 patents granted or pending, where it also delivers voice processing technology for more than 60 products which include a variety of home appliances, home audio/video applications, home networking devices, lighting, security devices, set-top-boxes, and toys where the main product is the video and audio processing chip.
Marvell Multimedia Business Portfolio
The multimedia solutions business from Marvell holds expertise in high-performance, power-efficient chip design. The Company enables rich multimedia, seamless connectivity, and customized experiences on the next-generation of home entertainment devices where it believes in bringing the right technology to the right growth markets. The portfolio for the Multimedia Solutions Business includes powerful single-chip, 4K/HD media processors for set-top boxes, and OTT streaming devices.
The Company reported net revenues of $94 million for FY16, ended January 18, 2017.
Strategic Benefits
Conexant has developed one of the market's leading assistant systems and supplies far-field voice recognition technology. This acquisition would tremendously help Synaptics to take advantage of the dawn of voice technology solutions. Together, Conexant and Synaptics, have the ability to deliver powerful solutions that enhance how people interact with machines, including smart home devices, automobiles, computers, IoT products, and wearables.
Synaptics and Conexant offer highly innovative solutions and will greatly enhance the human-machine-interface experience. Conexant has superior-performing voice solutions and a powerful supply chain with support capabilities. It has developed noise robust, voice-enabled products for leading artificial intelligence platforms. Conexant is also helping the $13 billion headphone industry to go digital with its USB-C CODEC solutions available for wearables. This acquisition will widen Synaptics approach towards the human interface solutions as well as accelerate the execution of its IoT growth strategy.
This transaction is expected to close in the Q3 FY17.
Marvell Multimedia believes that joining Synaptics will help them innovate for the fast-growing IoT market where it can influence its advanced technologies, broad ecosystem partners, and target the top-tier customer base. Marvell Multimedia delivers advanced media processing technology along with deep content security capabilities.
Synaptics will benefit from Marvell's multimedia video and audio processing solutions that capitalize on consumer's transition to on-demand generating media consumption.
The Marvell's Multimedia transaction is expected to close in the third quarter of 2017.
Synaptics Growth Prospects
Synaptics is a leading company with solutions designed to optimize user experiences in the mobile, PC and automotive industries. The Company leverages its unique R&D expertise, extensive IP, and supply chain capabilities to deliver a broad portfolio of touch, display, and biometric products. Synaptics has shipped more than 5-billion units to date and has more than 1,900 patents that are either pending or issued.
Synaptics is trying to come to terms with the reduced supply orders from smartphone makers, Apple and Samsung, for fingerprint sensor and display driver integrated circuit. Samsung, one of its key clients has started to use its own fingerprint sensor and is acquiring chips from Taiwan Egis Technology. This has slowed down Synaptics' profits from fingerprint sensors.
The Company additionally announced that it expects revenue for Q4 FY17 to be in the range of $420 million to $430 million, which is slightly below the previously offered guidance range of $410 million to $450 million.
Last Close Stock Review
On Wednesday, June 14, 2017, the stock closed the trading session at $52.25, slipping 3.49% from its previous closing price of $54.14. A total volume of 1.40 million shares have exchanged hands, which was higher than the 3-month average volume of 673.18 thousand shares. In the last three months, Synaptics' stock has gained 5.45%. Shares of the Company have a PE ratio of 77.41. At Wednesday's closing price, the stock's net capitalization stands at $1.82 billion.
Marvell Technology's share price finished yesterday's trading session at $17.54, falling 1.13%. A total volume of 4.72 million shares have exchanged hands. The Company's stock price soared 9.63% in the last three months, 23.78% in the past six months, and 76.99% in the previous twelve months. Additionally, the stock surged 26.46% since the start of the year. Shares of the Company have a PE ratio of 58.86 and have a dividend yield of 1.37%. The stock currently has a market cap of $8.76 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: [email protected]
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily