Freescale closes acquisition of SigmaTel

"SigmaTel's analog and mixed-signal IC technologies complement our successful portfolio of i.MX multimedia applications processors and position our multimedia business as a key growth driver for Freescale," said Rich Beyer, chairman of the board and CEO of Freescale Semiconductor. "With this acquisition, Freescale enhances its technology and talent enabling us to provide our customers worldwide with one of the broadest, most feature rich multimedia portfolios on the market."

Leveraging the strength of its analog-intensive, mixed-signal technology into its highly integrated ICs, SigmaTel has established a strong presence in a range of CE markets, including portable media players, digital televisions and consumer audio devices. The company has been especially successful in penetrating mid-range CE spaces due in part to a strong presence in Asia Pacific.

SigmaTel's technology and talent will merge with Freescale's multimedia applications division, and Freescale will begin incorporating SigmaTel employees into its engineering, marketing and sales organizations worldwide.

Freescale now maintains one of the industry's most comprehensive portfolios of embedded processors based on ARM core technology for portable consumer and automotive infotainment markets. This product lineup spans from high performance i.MX multifunction applications processors to highly integrated devices enabling consumer devices at aggressive price points.

Acquisition details
Trading in SigmaTel's stock has been halted as of today. SigmaTel will be delisted from the NASDAQ exchange and trading of its stock will be suspended promptly after the closing. Under the terms of the merger agreement entered into on Feb. 3, and adopted by SigmaTel's stockholders at a special meeting on April 21, SigmaTel's stockholders (with certain exceptions set forth in the merger agreement) are entitled to receive $3 in cash, without interest, for each share of SigmaTel common stock that they hold. As soon as practicable, a paying agent appointed by Freescale will mail a letter of transmittal and instructions to all SigmaTel stockholders of record.