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Freescale completes acquisition of SigmaTel
 
Indiantelevision.com Team

(5 April 2008 5:30 pm)

 

BANGALORE: – Freescale Semiconductor (Freescale) has completed its acquisition of SigmaTel, Inc, paying $3 per outstanding share of SigmaTel stock representing approximately $110 million in cash.

 

"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 Freescale chairman of the board and chief executive officer Rich Beyer. "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 consumer electronics markets, including portable media players, digital televisions and consumer audio devices. The company has been especially successful in penetrating mid-range consumer electronics spaces due in part to a strong presence in the Asia Pacific region.

SigmaTel's technology and talent will merge with Freescale's Multimedia Applications Division, which reports to Lynelle McKay, senior vice president and general manager of the company's Networking and Multimedia Group. Freescale will now begin incorporating SigmaTel employees into its engineering, marketing and sales organizations worldwide.

The portable digital multimedia market is one of the fastest growing markets for semiconductor solutions. With 2007 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 continue growth in excess of 15 per cent per year, according to In-Stat (www.In-Stat.com).

In addition to PMPs, one of the hottest consumer products in 2007 was the personal navigation device (PND), a sophisticated portable device that combines stored map data with location data derived from a built-in global positioning system (GPS) satellite receiver. In-Stat predicts worldwide unit shipments for PNDs will grow from 14 million units in 2006 to approximately 56 million units in 2011.

 
 
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