Synaptics, Incorporated stock rose as high as 11.43% during the early trading hours, after Bloomberg reported that the company is still in active talks with a state-backed Chinese investment group for a possible acquisition. As per people familiar with the matter, the deal may value the company at around $110 per share (almost $4 billion).

 

The touchscreen technology maker plans to announce the deal by the end of this month, around the time when it is scheduled to report third quarter of fiscal 2016 (3QFY16) earnings results. The sources mentioned that Synaptics and the Chinese consortium, which includes BOE Technology Group Co., Ltd., are still negotiating on a price, which may be around $110 apiece. As per SYNA stock’s closing price of $81.27 yesterday, the company’s market capitalization totals roughly $3 billion.

 

This is not the first time that a Chinese player has shown interest in a US company; in February this year, Fairchild Semiconductor turned down an offer from China Resources Microelectronics Ltd. and Hua Capital Management Co., Ltd., as it believed that the takeover may raise concerns from the Committee on Foreign Investment in the United States (CFIUS). However, Synaptics remains confident that its deal is likely to be approved by the CFIUS.

 

The sources stated that the Chinese investors group includes a 4-billion yuan ($617 million) integrated-circuit fund, backed by BOE Technology. Other companies include National Integrated Circuit Industry Investment Fund Co., Ltd. and Beijing E-Town International Investment and Development Co., Ltd.

 

The deal’s final terms have not been agreed upon yet, and there is still a chance that it may not go forward. Initially, the two parties had aimed to reach an agreement after the Chinese New Year.

 

Synaptics CEO Rick Bergman commented: “We don’t comment on rumors or market speculation.” SYNA shares have gained 10.36% year-to-date (YTD). At present, the stock is trading up 8.81% at $88.43, as of 12:10 PM EDT.

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