Silicon Laboratories Inc. (SLAB) has inked an agreement to acquire Sigma Designs Inc. (SIGM) for $282 million in a cash transaction, Silicon Labs said late Thursday. Silicon Labs stock is flat after hours. Silicon Labs said that it will pay $7.05 a share, or a 26% premium on Sigma's closing share price of $5.60 on Dec. 6. Sigma makes technology related to smart homes as well as media connectivity and smart TV tech. "By adding Z-Wave technology to Silicon Labs' connectivity portfolio, we will be better positioned to serve this fast-growing market," Silicon Labs Chief Executive Tyson Tuttle said in a statement. "Ecosystem providers and developers will have a one-stop shop for wireless connectivity solutions for the home." Silicon Labs said that it planned to divest or wind down the smart TV business in the future, and is in "active discussions" to sell the media connectivity unit. Silicon Labs stock has gained 39% this year, as the S&P 500 index rose 17%.
-Max A. Cherney; 415-439-6400; AskNewswires@dowjones.com
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