Slide 1: Synaptics to Acquire DSP Group Accelerates leadership in Low Power Edge AI
Synaptics to Acquire DSP Group Accelerates leadership in Low Power Edge AI August 30, 2021 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations and projections relatin
Slide 3: Disclaimer Regarding Non-GAAP Financial Measures
Disclaimer Regarding Non-GAAP Financial Measures In this presentation, we discuss certain financial measures that are not calculated in accordance with generally accepted accounting principles, including Adjusted EBITDA, non-GAAP gross margin, non-GAAP operating margin and non-GAAP EPS. We have not
Slide 4: Strategic Rationale: New $3B SAM Opportunity
Strategic Rationale: New $3B SAM Opportunity Financially Sound Transaction Leader in Low Power Edge AI Expected to be immediately accretive to non-GAAP earnings(2) $30M in combined operating synergies expected within 12 months of close Consistent with Synaptics business model and long-term financial
Slide 5: $2B+ SAM Opportunity in Low-Power Edge AI
$2B+ SAM Opportunity in Low-Power Edge AI Consumer/ Smart Home Industrial / Manufacturing Smart Retail Other Applications User detection People counting User interface Voice Gestures People & event detection Occupancy sensing Track and trace Asset monitoring Predictive maint. Shelf inventory monitor
Slide 6: $800M+ SAM in ULE Enabled Security
$800M+ SAM in ULE Enabled Security ULE enables secure communication between hub and low power sensors Reliable performance: Operates in a clean, interference-free spectrum Cross-selling opportunity in Smart Home Source: Berg Insight 3rd party research in 2027, and management estimates
Slide 7: Strengthens Wireless Connectivity
Strengthens Wireless Connectivity Bluetooth GPS/GNSS ULE Other Connectivity Technologies Wearables Smart speakers Audio headsets Computing Tablets Mobile Accessories Wearables Navigation Tablets Mobile Accessories Home Security Home Sensors Home Gateways Baby Monitors LPWAN OTT/STB/TV Gaming Home Se
Slide 8: Combined Portfolio Accelerates Cross-Selling
Combined Portfolio Accelerates Cross-Selling ULE Touch sensing Display drivers Fingerprint sensors Video interface Low power AI Audio processing Edge processing VoIP processing DECT Cordless WiFi/BT/GNSS Voice processing
Slide 9: DSP Group: Leadership in Voice AI and IoT Technologies
DSP Group: Leadership in Voice AI and IoT Technologies Rapidly growing franchises in low power AI, voice and connectivity Innovation leader (235+ Patents)(1) with expertise in IoT technologies and applications ~70% of revenue from IoAT technologies and growing double-digit Notes: Includes granted an
Slide 10: Continues our Diversification into IoT
Continues our Diversification into IoT Q4 FY 2021 Synaptics Revenue Mix Pro Forma with DSP Group(1) IoT 50% IoT 55% Note: Pro forma reflects Synaptics Q4 FY2021 actual results as reported and consolidated DSP Group Q2 FY2021 results as reported DSP Group
Slide 11: Compelling Financial Combination
Compelling Financial Combination Notes: DSP Group’s Adjusted EBITDA defined as quarter ended June 2021 Non-GAAP Operating Profit as reported, annualized, plus June 2021 quarter Depreciation & Amortization of approximately $1.4M, annualized, and assumes achievement of $30M synergy plan Combined Synap
Slide 12: Transaction Overview
Transaction Overview Consideration Timing Financials All outstanding shares at $22.00 per share, paid in an all-cash transaction No financing contingency Implies enterprise value of ~$450M, net of cash on hand ($130M ending 6/30/2021) Expected to close by end of CY2021 No expected regulatory filings
Slide 13: Summary
Summary Highly complementary business which expands IoT market reach Accelerates low power AI strategy targeting a $2B+ market opportunity Strengthens wireless connectivity with the addition of ULE to the portfolio Expected to be immediately accretive to non-GAAP Earnings & EPS
Slide 14: Q&A
Q&A