By Lisa Kerner
Charlotte, N.C., Feb. 4 - Freescale Semiconductor, Inc. agreed to acquire SigmaTel, Inc. for $3 per share in cash in a deal valued at some $110 million.
The transaction, subject to shareholder approval, is slated to close in the second quarter.
"Freescale's proven strengths in the high-performance multimedia and general purpose markets are complemented by SigmaTel's strong analog and mixed-signal expertise in the portable media player and consumer audio markets," senior vice president and general manager of Freescale's networking and multimedia group Lynelle McKay said in a company news release.
"The increased demand for feature rich, always-connected consumer electronics devices is driving manufacturers to look for platform-based solutions that will accelerate time to market," SigmaTel president and chief executive officer Phil Pompa added.
Freescale designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The privately held company, based in Austin, Texas, reported 2007 sales of $5.7 billion.
SigmaTel, also based in Austin, is a fabless semiconductor company that designs, develops and markets mixed-signal integrated circuits for the consumer electronics market.
| Acquirer: | Freescale Semiconductor, Inc.
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| Target: | SigmaTel, Inc.
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| Announcement date: | Feb. 4
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| Transaction total: | $110 million
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| Price per share: | $3.00
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| Expected closing: | Second quarter of 2008
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| Stock price of target: | Nasdaq: SGTL: $1.79 on Feb. 1
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