Synaptics and Dialog Semiconductor have ended their brief courtship, with the companies announcing that they have broken off talks about the latter’s potential acquisition of the former.
In announcing the end of the negotiations, Dialog Semiconductor did not offer a reason; but a “source familiar with the matter” tells Reuters that Synaptics “balked at the proposed terms” of the deal.
In its own statement announcing the end of the talks, Synaptics CEO Rick Bergman emphasized that there are plenty of fish in the sea, asserting that “interest by a number of industry players underscores the tremendous value inherent to our company.” Bergman added that Synaptics is “well-positioned to continue as a standalone growth company and will remain disciplined in generating superior long-term value for our shareholders.”
Synaptics has established itself as a leading components provider for tech products, offering sophisticated technologies including digital signal processors and fingerprint sensor modules. In stressing the great value of his company after the collapse of the Dialog talks, Bergman went so far as to reveal that the company’s management “expect to report earnings per share for our recently completed fourth quarter at the high end of our prior guidance” in an earnings update scheduled for August 9th.
News of the development – or lack thereof – comes just about a week after another major acquisition effort fell through between Qualcomm and NXP Semiconductors. In that instance, the main issue was that the US-based Qualcomm was not able to get regulatory approval for the takeover from Chinese authorities; though Reuters’ source says uncertainty over such regulatory issues was not a factor in the collapse of the Synaptics and Dialog deal.
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