Freescale eyeing consumers with $110M SigmaTel purchase

Feb. 4, 2008 – Freescale Semiconductor has agreed to acquire IC maker SigmaTel for around $110M in cash ($3/share) to boost its mixed-signal offerings in devices such as portable media players and consumer audio.

The deal, projected to close in 2Q08 pending shareholder/regulatory approvals, includes a “go shop” provision allowing SigmaTel to solicit any other offers until March 4.

Lynelle McKay, SVP/GM of Freescale’s networking and multimedia group, explained in a statement that Sigmatel’s strong mixed signal expertise complements Freescale’s strengths in high-performance multimedia and general purpose markets.

“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,” stated Phil Pompa, president and CEO of SigmaTel. A combined Freescale and SigmaTel “is the obvious choice for these next-generation devices.”

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