Freescale Agrees to Acquire SigmaTel for $110M

SigmaTel Inc., a manufacturer of mixed-signal integrated circuits for the consumer electronics market, announced Monday that it has agreed to be sold to Freescale Semiconductor, a producer of embedded computer chips for the automotive, consumer, industrial, networking and wireless markets. SigmaTel said that, under the terms of the agreement, Freescale will pay $3.00 cash per outstanding share of SigmaTel stock, which calculates to a total purchase price of $110 million. SigmaTel noted that the agreement includes a two-month, "go shop" provision that allows it to consider competing proposals. SigmaTel added that the deal is subject to customary closing conditions but should close within the next quarter. Both SigmaTel and FreeScale Semiconductor are headquartered in Austin, Texas.