Synaptics (SYNA) said late Tuesday that it signed a licensing agreement with Broadcom (AVGO) to solidify its position for end-to-end artificial intelligence Internet of Things connectivity and expand its ability to service the Android ecosystem.

The company said it expects the agreement will likely add more than $40 million in annualized sales and to be "immediately accretive" to non-GAAP earnings per share.

The deal includes Wi-Fi 8, ultra-wideband, Wi-Fi 7, advanced Bluetooth, and GPS/GNSS products and technology for the Internet of Things and Android ecosystem, the company said.

The "all-cash" transaction is expected to close on Thursday, Synaptics said.

The company plans to provide more details of the deal on Feb. 6 at its fiscal Q2 investor conference call.

Shares of Synaptics rose 3.1%, while Broadcom was slightly lower in after-hours activity.

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