Tuesday, February 05, 2008

Freescale Buys SigmaTel

Neither story has received a lot of press yet, but in my opinion, BOTH are pretty big deals….


“Freescale Semiconductor, plotting a future in digital media, agreed to buy SigmaTel in a $110 million deal.  Freescale, a wireless chip maker that was taken private last year, said Monday that it will pay $3 share for Austin, Texas-based SigmaTel. The deal represents a 67% premium over SigmaTel's closing price of $1.79 Friday.  Shares of SigmaTel surged 52% in pre-market trading Monday.  SigmaTel makes semiconductors for a variety of consumer devices, including media players and some models of Apple's iPods.  The news comes just days after Freescale's largest customer, Motorola, announced that it was exploring the possible sale of its mobile phone business.”


PRESS 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," said Phil Pompa, president and CEO of SigmaTel. "With the addition of SigmaTel, Freescale is the obvious choice for these next-generation devices."  "The SigmaTel acquisition enhances the long-term, strategic value we can deliver to our customers," said Lynelle McKay, senior vice president and general manager of Freescale's Networking and Multimedia Group. "Freescale's proven strengths in the high-performance multimedia and general purpose markets are complemented by SigmaTel's strong mixed-signal expertise in the portable media player and consumer audio markets."




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