Freescale to pay $110M for SigmaTel
A definitive agreement has been reached for Freescale Semiconductor Inc. to acquire SigmaTel, Inc. Freescale is a privately held company engaged in the design and manufacture of embedded semiconductors. SigmaTel is a provider of analog intensive, mixed-signal ICs for the digital multimedia market.
"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 VP 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."
Under the terms of the agreement, Freescale will pay $3 cash per outstanding share of SigmaTel stock, or approximately $110 million in total. The agreement contains a "go-shop" provision through March 4, 2008, during which period SigmaTel has the right to solicit and engage in discussions and negotiations with respect to potential competing proposals. The agreement is subject to various customary closing conditions, including all necessary shareholder and regulatory approvals, and is expected to close in the Q2 08. Vinson & Elkins LLP acted as the legal advisor to SigmaTel and ThinkEquity Partners LLC acted as exclusive financial advisor to SigmaTel.