Freescale to Buy SigmaTel for $108M
In an AP article published this morning on Yahoo, Freescale announced plans to purchase SigmaTel. SigmaTel designs chips used in digital picture frames. Freescale, a semiconductor company, purchased SigmaTel for $3 a share. Read the full article below, or from Yahoo Finance.
Freescale to Buy SigmaTel for $108M
Monday February 4, 9:02 am ET
Freescale Semiconductor to Acquire SigmaTel Inc. for $3 Per Share in Cash; SigmaTel Shares Up
AUSTIN, Texas (AP) — SigmaTel Inc., a designer of chips used in media devices, said Monday it has agreed to be acquired by privately held semiconductor maker Freescale Semiconductor for $3 per share in cash — representing a 68 percent premium to its closing stock price Friday.
SigmaTel shares closed at $1.79 on Friday, and surged $1.09, or 61 percent, to $2.88 in premarket trading.
The deal is valued at about $108.1 million based on 36 million shares outstanding as of Oct. 31. Freescale values the deal at about $110 million.
SigmaTel has the right to solicit superior proposals through March 4.
Subject to customary closing conditions, including shareholder and regulatory approval, the acquisition is expected to close in the second quarter of 2008.
