Boston, MA 06/11/2014 (wallstreetpr) – Synaptics, Incorporated (NASDAQ:SYNA) proposes to buy Renesas SP Drivers Inc, the sole supplier of iPhone’s display driver chips.
Synaptics has agreed to buy Renesas SP Drivers, which is a division of the Japan based chip- manufacturer Renesas Electronics Corp., for $475 million. The amount will be the price Synaptics is paying for the remaining outstanding shares of the company.
The Chief Executive Officer of Synaptics, Rick Bergman, is enthusiastic to win the iPhone maker back as its customer after 8 years. Synaptics was a supplier for parts of Apple Inc. (NASDAQ:AAPL)’s products and with this acquisition it seeks to re-establish the relationship. Apple had discontinued the partnership after it decided to make internal shifts in touch technology. Prior to that, the iPod maker had developed the first scrolling wheel for its music player.
In a Tokyo news conference, Bergman said that Synaptics could have an exciting opportunity as Apple, he believes, does not manufacture driver chips internally. He said that the technologies of the two companies are complementary.
Apple, on the other hand, prefers availing driver chips for its products’ display from only one dedicated source, which, until now, was Renesas. According to people having knowledge on the issue, the company believes that driver chips obtained from varied sources could result in significant variations in its devices’ display.Synaptics, Incorporated (NASDAQ:SYNA), which enjoys 70% of the touchpad market, supplies chips to Samsung Electronics Co., which employs them in its smartphones including Galaxy S5 and Galaxy Note 3 phablets.
Synaptics, Incorporated (NASDAQ:SYNA) also seeks to assimilate its touch technology with the display drivers of Renesas to enhance performance and cut costs, said Kevin Barber, the company’s Senior Vice President. Further, it is also anticipating a surge in fingerprint sensors, 90% of whose market it had acquired after last year’s merger with a company focused in the technology.