Stock Alert: Synaptics Gains 15%

(RTTNews) - Shares of Synaptics Inc. (SYNA) are gaining over 15% on Wednesday morning. The other day the company had announced a deal to buy the wireless IoT business of Broadcom (AVGO) for about $250 million.

SYNA is currently trading at $69.52, up $9.51 or 15.84%, on the Nasdaq.

Under the terms of the agreement, Synaptics will acquire certain rights to Broadcom's existing Wi-Fi, Bluetooth and GPS/GNSS products and business in the IoT market as well as future roadmap devices designed in advanced process nodes.

Synaptics expects the transaction to add about $65 million in current annualized sales and provide significant revenue growth potential. The transaction is expected to add to Synaptics' earnings immediately.