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Stock Alert: Synaptics Trading 9% Higher

Shares of human interface (HMI) hardware and software developer Synaptics Incorporated (SYNA) are rising more than 9% Tuesday morning at $79.01, nearing its 52-week high of $84.75.

Synaptics Monday said it has agreed to buy DisplayLink Corp., a high-performance video compression technology provider, for $305 million cash.

The transaction is estimated to bring in revenue of $94 million a year, immediately accretive to non-GAAP gross margins, non-GAAP operating margins, and non-GAAP earnings post-close.

The deal is expected to close in Synaptics' first quarter of 2021.

"Several market trends such as work from home (WFH), bring your own device (BYOD) and office hoteling coupled with the growing need for multiple, high resolution displays in enterprises are driving demand for universal docking and casting solutions," said Michael Hurlston, President and CEO of Synaptics. "DisplayLink's track record of success and strong market validation coupled with Synaptics' leadership in commercial docking solutions positions us well to capitalize on these trends and deliver compelling solutions to our combined customer base."

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