China’s semiconductor sector-focused investment firm Hua Capital has signed an agreement to acquire an Asia-based mobile LCD touch and display driver integration (TDDI) business from Nasdaq-listed human interface solutions developer Synaptics for $120 million in cash.
The transaction is expected to close in the second quarter of 2020, according to a recent statement.
Synaptics, which went public in 2002, develops human interface solutions for the mobile, PC, smart home, and automotive industries. The company offers touch, display, biometrics, voice, audio, and multimedia products built on its own R&D, intellectual property (IP) and supply chain capabilities.
The company has over 2,000 patents that are either pending or issued. It has so far shipped more than 6 billion units and has reached a runway of a billion a year, shows the company website.
“We will continue to invest in technologies for the premium segments of the mobile market where our advanced touch controllers and DDICs deliver best-in-class performance,” said Janice Mori, senior vice president, Touch and Display Business Unit at Synaptics.
“In addition, we will still develop TDDI solutions for automotive applications where we have an unparalleled roadmap and are currently capturing the majority of sockets globally,” said Mori.
Hua Capital was created in 2014 by Tsinghua Holdings, a wholly-owned subsidiary of Chinese top academic institution Tsinghua University, and China Fortune-Tech Capital, which primarily makes investments in the integrated circuit field. The company looks at investment opportunities in semiconductor designing, manufacturing and testing segments, backing companies at all stages of development.