DSP Group Acquisition & Valuation

DSP Group was acquired by Synaptics for $549M in August 2021, a 4.8x multiple on $115M of revenue.

DSP Group acquisition price

$549M

Acquired by Synaptics · Aug 2021

DSP Group revenue at acquisition

$115M

Last twelve months · Aug 2021

DSP Group revenue multiple at acquisition

4.8x

EV/Revenue · Aug 2021

DSP Group Overview

About DSP Group

DSP Group was a fabless semiconductor company supplying chips for voice processing and wireless communications. Its products were designed into equipment made by consumer electronics and communications manufacturers, including cordless telephones, home gateways and connected household devices. The company's technology portfolio included DECT and related wireless standards, voice-over-internet communications and low-power connectivity for smart-home applications. It combined semiconductor design with embedded processing and software capabilities, while relying on external manufacturing rather than operating as an integrated chip foundry. Revenue came primarily from supplying semiconductor products to equipment manufacturers and their production partners. DSP Group was incorporated in Delaware and reported principal executive offices in San Jose, California, alongside substantial operations in Israel. Synaptics completed its acquisition of the company in December 2021, adding its voice and wireless technology to Synaptics' product portfolio.


Founded

1979

HQ

United StatesSan Francisco, CA

Website

dspg.com

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Revenue

$115M (Aug 2021)

Valuation

$20M (Jan 2009)

DSP Group Acquisition

DSP Group was acquired by Synaptics for $549M on 30 August 2021.

The acquisition price implies a 4.8x revenue multiple on $115M of revenue.

Synaptics Incorporated completed its acquisition of DSP Group, Inc., a leading global provider of voice processing and wireless chipset solutions for smart connected devices, for approximately $549 million in cash on December 2, 2021. The deal was announced on August 30, 2021, at $22 per share in an all-cash transaction unanimously approved by both companies' boards. DSP Group specializes in technologies like SmartVoice, low-power AI, ULE wireless, and VoIP processing, serving applications in smart home products, voice activation systems such as Amazon Alexa interfaces, GoPro cameras, smart TVs, and home security systems. The acquisition strategically combines Synaptics' AI, far-field speech recognition, and IoT Wi-Fi/Bluetooth leadership with DSP Group's voice and wireless expertise to enhance cross-selling and deliver differentiated edge AI solutions. Synaptics financed the transaction with a $600 million senior secured term loan and anticipates $30 million in annual run-rate synergies within 12 months of closing, with the deal being immediately accretive to non-GAAP EPS. DSP Group's 2020 annual revenue was $114.5 million.

DSP Group acquisition details
AcquirerDateTypePriceEV/Revenue
30 Aug 2021Strategic M&A$549M4.8x

DSP Group Valuation

DSP Group is currently valued at $20M, based on its secondary sale in January 2009. Read the announcement ↗

DSP Group valuation by funding round

DSP Group valuation by funding round
DateStageValuation
Jan 2009Secondary$20M

DSP Group Funding History

DSP Group has 1 recorded secondary share sale and no primary funding rounds.

DSP Group funding rounds
DateStageValuationDeal Summary
Jan 2009Secondary$20MNXP sold its shares in DSP Group during 2009, receiving USD20 million in proceeds according to its subsequent SEC filing. The semiconductor company had obtained the investment as part of the 2007 disposal of its Cordless and VoIP Terminals operations to DSP Group. The annual financial disclosure also records a USD4 million accounting loss on the share disposal, which is not treated as additional consideration or a separate transaction. NXP remained associated with KKR’s investment consortium during the disposal, placing the equity exit within the relevant portfolio ownership period.

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Acquisitions by DSP Group

DSP Group has acquired 2 companies to date.

Last acquisition by DSP Group was on June 9th 2020. DSP Group acquired SoundChip for $21M.


Latest Acquisitions by DSP Group

SoundChip
NXP (Cordless and VoIP terminals business)
Description
SoundChip is a Swiss provider of system-level audio solutions excelling in electroacoustic engineering for consumer electronics and passenger entertainment brands. Headquartered in Switzerland, it supports global partners with products ensuring audio quality and sound comfort. SoundChip delivers via soundchip.ch to leading industry names.
NXP's Cordless and Voice over Internet Protocol terminals business supplies semiconductor products, software and system solutions for residential telephony. Its portfolio covers radio-frequency chipsets, baseband processors and related solutions for cordless telephone standards, voice gateways and internet calling equipment. The business served equipment manufacturers in digital cordless and voice communications markets. It generated approximately USD 220 million of revenue in 2006 and employed around two hundred people at locations worldwide. Before its sale, it formed part of NXP's Mobile and Personal Business Unit. DSP Group combined the activities with its own telephony operations to expand its product range, European presence and research capabilities. This profile refers to the transferred product business rather than NXP as a whole.
HQ CountrySwitzerland-
HQ City
Vaud
-
Deal Date9 Jun 202014 May 2007
Valuation$21M$270M
EV/Revenue
EV/EBITDA

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Investments by DSP Group

DSP Group has invested in 3 companies to date.

Latest investment by DSP Group was on December 6th 2022. DSP Group invested in AlgoBulls in their $2M Seed round.


Latest Investments by DSP Group

AlgoBulls
smallcase
smallcase
Pocket Aces
Description
AlgoBulls is a Hyderabad-based algorithmic trading platform that enables retail investors and developers to create, backtest, and deploy AI-powered trading strategies on Indian stock exchanges like NSE and BSE. The platform supports Python-based strategy development alongside no-code builders and features an online marketplace for buying and selling pre-built algos. It connects directly with over a dozen brokers including Zerodha, Upstox, and Angel One to execute live trades in equities, futures, and options. AlgoBulls also facilitates global market access through partnerships and provides tools for strategy optimization using historical data spanning multiple years.
smallcase is a Bengaluru-headquartered investment platform enabling users to invest in curated portfolios of Indian stocks and ETFs themed around sectors like technology, banking, and sustainability. Launched in 2015 by Zerodha and FundsIndia, the platform hosts over 200 smallcases created by SEBI-registered managers, allowing one-click purchases starting from INR 7,000 with direct brokerage integration. It serves more than 1 million users through mobile and web apps focused on diversified, rule-based investing.
smallcase is a Bengaluru-headquartered investment platform enabling users to invest in curated portfolios of Indian stocks and ETFs themed around sectors like technology, banking, and sustainability. Launched in 2015 by Zerodha and FundsIndia, the platform hosts over 200 smallcases created by SEBI-registered managers, allowing one-click purchases starting from INR 7,000 with direct brokerage integration. It serves more than 1 million users through mobile and web apps focused on diversified, rule-based investing.
Pocket Aces is a Mumbai-headquartered digital content creator operating FilterCopy for short-form videos, Dice Media for scripted series, and Gobble for food content. The company also runs Loco, a live esports and gaming app available on iOS and Android. Targeting India's youth audience, it produces original programming distributed across YouTube, Instagram, and its platforms.
HQ CountryIndiaIndiaIndiaIndia
HQ City
Mumbai
Bangalore
Bangalore
Mumbai
Deal Date6 Dec 202218 Aug 202128 Sep 202030 Jul 2019
RoundSeedSeries CSeries BSeries B
Raised$2M$40M$14M$15M
InvestorsSharath N.; Yuvraj A. Thakker; LVX Ventures; Findoc; Dishant Milan Parikh; Venture Catalysts; Dominor InvestmentAmazon Smbhav Venture Fund; Premji Invest; WEH Ventures; BEENEXT; Faering Capital; Arkam Ventures; Blume Ventures; HDFC Bank; Utpal Sheth; Peak XV PartnersWEH Ventures; BEENEXT; Arkam Ventures; Blume Ventures; Utpal Sheth; Peak XV Partners; Kunal ShahPeak XV Partners; 3one4 Capital
Valuationundisclosed$200Mundisclosedundisclosed
EV/Revenue
EV/EBITDA

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DSP Group Competitors

DSP Group competitors include listed companies like Peri Power Semiconductor, Park Aerospace, Raydium and M31 Technology, and private ones like Nanotech Energy and XINYI Information Technology Ltd.

Public and private companies comparable to DSP Group
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Nanotech EnergyUnited StatesLos Angeles, CAPrivate--$550M-
Peri Power SemiconductorChinaChinaPublicly listed$28M$8M$571M-
Park AerospaceUnited StatesUnited StatesPublicly listed$73M$15M$571M5.6x
XINYI Information Technology LtdChinaShanghaiPrivate--$522M-
RaydiumTaiwanTaiwanPublicly listed$695M$59M$580M0.4x
M31 TechnologyTaiwanTaiwanPublicly listed$55M$5M$583M9.6x

DSP Group Public Comps

DSP Group is no longer listed, but its public comps include Peri Power Semiconductor, Park Aerospace, Raydium, M31 Technology, Qualitau, Semco Technologies, NVE, Centum Electronics, First Sensor and Indie Semiconductor.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Peri Power Semiconductor$28M$8M17.9x-59.8x-
Park Aerospace$73M$15M6.2x5.6x29.7x24.2x
Raydium$695M$59M0.4x0.4x4.5x-
M31 Technology$55M$5M10.3x9.6x121.4x80.4x
Qualitau$61M$26M6.4x-15.2x-
Semco Technologies$38M$16M12.9x10.8x30.2x25.2x
NVE$26M$16M18.3x-29.3x-
Centum Electronics$100M$14M6.3x5.4x44.0x38.3x

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Common questions about DSP Group

When was DSP Group founded?DSP Group was founded in 1979.
Where is DSP Group headquartered?DSP Group is headquartered in San Francisco, CA, United States.
Is DSP Group publicly listed?No, DSP Group was acquired by Synaptics in August 2021.
Who acquired DSP Group?DSP Group was acquired by Synaptics in August 2021.
How much was DSP Group acquired for?DSP Group was acquired for $549M in August 2021, a 4.8x revenue multiple.
What is DSP Group's valuation?DSP Group was last valued at $20M in its secondary sale in January 2009.
Which companies are comparable to DSP Group?Companies comparable to DSP Group include Nanotech Energy, Peri Power Semiconductor, Park Aerospace, XINYI Information Technology Ltd, Raydium and M31 Technology.
How many companies has DSP Group acquired?DSP Group has acquired 2 companies, including SoundChip and NXP (Cordless and VoIP terminals business).
What was the largest acquisition by DSP Group?The $270M acquisition of NXP (Cordless and VoIP terminals business) in May 2007 is the largest acquisition DSP Group has made to date.
How many companies has DSP Group invested in?DSP Group has invested in 3 companies, including AlgoBulls, smallcase and Pocket Aces.
What was DSP Group's last investment?In December 2022, DSP Group invested in AlgoBulls' $2M seed round alongside Sharath N., Yuvraj A. Thakker, LVX Ventures and 4 other investors.

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