Mumbai: American firm, Freescale Semiconductor Inc, has acquired SigmaTel, Inc, for approximately $110 million in cash with $3 per outstanding share, the company announced on 30 April.
With the takeover Freescale will merge SigmaTel's analog and mixed-signal IC technologies in its multimedia division, which will push the company's business on the growth path in the consumer electronics market. Freescale will also begin to place SigmaTel employees into its engineering, marketing and sales organisations worldwide, according to the merger agreement.
Semiconductors research and consulting firm In-Stat stated that, the portable digital multimedia market is one of the fastest growing markets for semiconductor solutions. In 2007, with a shipments in excess of 215 million units, portable media players (PMPs) continue to dominate the portable consumer electronics (CE) device market and are expected to grow by 15 per cent per year.
In addition to portable media players, the sale of personal navigation device (PND) is also expected to grow from 14 million units in 2006 to approximately 56 million units in 2011. PND is a sophisticated portable device that combines stored map data with location data derived from a built-in global positioning system (GPS) satellite receiver.
''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 chief executive officer for 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,'' he added.
SigmaTel has a strong presence in consumer the electronics market with products such as portable media players, digital televisions and consumer audio devices. The company has good presence in the Asia Pacific region in the mid-range consumer electronics segment.
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.
Based in Austin, Texas, Freescale Semiconductor designs and manufactures embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. The company has design, manufacturing and sales and research and development operations in more than 30 countries. In 2007 the company recorded sales of of $5.7 billion