 Synaptics Inc SYNA has now signed definitive agreements to acquire certain assets and manufacturing rights for Broadcoms AVGO wireless IoT business for about 250 million in an all-cash transaction. The deal is expected to close in Synaptics first quarter of fiscal year 2021.Under the terms of the agreements, Synaptics will acquire certain rights to Broadcoms existing Wi-Fi, Bluetooth and GPSGNSS products and business in the IoT market as well as future roadmap devices designed in advanced process nodes.According to Synaptics, the deal strengthens and accelerates its position in the fast-growing consumer IoT market. It expects the transaction to add 65 million in current annualized sales and provide significant revenue growth potential.Expanding our offering in the high growth IoT market has been one of the major focus areas for Synaptics and the addition of best-in-class wireless connectivity technology to our portfolio significantly enhances our overall position, said Michael Hurlston, CEO of Synaptics.This acquisition complements Synaptics ability to sell into a broad range of devices such as IP cameras, smart displays, speakers, home automation, and gaming consoles all of which require cutting-edge technologies including Wi-Fi 6 and 6E, Bluetooth 5.2 and GPS L5.The transaction is expected to be immediately accretive to Synaptics non-GAAP gross margins and non-GAAP earnings post-close, and the company plans to finance the transaction from existing on-hand cash balance.Following the news, Rosenblatt Securities analyst Kevin Cassidy upgraded Synaptics from hold to buy with a price target of 73 22 upside potential.He called Broadcoms wireless connectivity products best-in-class and told investors: We are upgrading SYNA to Buy from Neutral based on our estimated 0.45 0.55 accretion to our FY21 non-GAAP EPS estimates that the Broadcom wireless IoT connectivity business can provide. We believe that with Synaptics managements focus on IoT, the acquired 65mnyear revenue can grow roughly 5 10 annually.Plus Cassidy believes that the deal helps lower the companys dependence on the mobile display business, which faces low competitive barriers.Shares in SYNA rose 2 in Tuesdays trading, taking the stocks year-to-date loss to 9. Overall analysts have a cautiously optimistic Moderate Buy consensus on Synaptics with a 80 price target 32 upside potential.See Synaptics stock analysis on TipRanks.Related News: Facebook Quietly Testing Instagram Reels In India- Report DocuSign Buys Liveoak For 38M To Boost New Notary Offering Google, Deutsche Bank Forge 10-Year Cloud Partnership More recent articles from Smarter Analyst: DocuSign Buys Liveoak For 38M To Boost New Notary Offering Uber Launching Grocery Delivery Service In Latin America, Canada, And US Google, Deutsche Bank Forge 10-Year Cloud Partnership Facebook: COVID-19 and Ad Boycott Result in Top Analyst Slashing Estimates 