Synaptics announced a definitive agreement to acquire the assets and manufacturing rights of wireless IoT business, Broadcom. The deal is work approximately $250 million all-cash.

“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 president and CEO of Synaptics Michael Hurlston, in a press release. “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 company believes the transaction can add $65 million in annual sales and increase potential revenue growth. Per the release, the transaction is expected to be immediately accretive to Synaptics’ non-GAAP gross margins and non-GAAP earnings post-close.

The transaction has already been approved by Synaptics’ board of directors and is expected to close in the first quarter of the 2021 fiscal year.

For more information, visit https://investor.synaptics.com/.