Stock Monitor: Sigma Designs Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 12, 2017 / Active-Investors issued a free report on Silicon Laboratories Inc. (NASDAQ: SLAB) ("Silicon Labs"), which is readily accessible upon registration at www.active-investors.com/registration-sg/?symbol=SLAB as the Company's latest news hit the wire. On December 07, 2017, the Company announced that it has signed an agreement to acquire Sigma Designs for $7.05 per share in a cash transaction valued at approximately $282 million. This price represents a 26% premium over Sigma Designs' closing price of $5.60 per share on December 06, 2017. Sign up now for our free research reports at:
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Sigma Designs plans to divest or wind down its Smart TV business. The Company is in active discussions with prospective buyers to divest its Media Connectivity business. After divestiture and restructuring actions, Silicon Labs expects the acquisition of Sigma Designs to be accretive on a non-GAAP basis.
The agreement, expected to be finalized in Q1 2018, is approved by Boards of Directors of both companies. The transaction is subject to certain closing conditions and regulatory approvals. In case closing conditions are not met, Sigma Designs has agreed to sell its Z-Wave business to Silicon Labs for $240 million, contingent upon approval by Sigma Designs' stockholders.
Strategic Benefits of the Agreement
The addition of Sigma Designs' Z-Wave technology for smart home solutions will expand Silicon Labs' wireless connectivity portfolio and worldwide customer base for the connected home. Z-Wave technology will extend connectivity options for developers and ecosystem providers and deliver alternatives to customers and markets for secure, interoperable IoT devices. Silicon Labs intends to work in collaboration with the Z-Wave Alliance to drive adoption and development of Z-Wave technology.
Transaction Provides Immediate Value to Sigma Designs' Shareholders
Commenting on the agreement, Thinh Q. Tran, President and CEO of Sigma Designs, stated that Silicon Labs and Z-Wave share a vision of secure, interoperable smart homes. This transaction provides immediate value to Sigma Designs' shareholders, and offers new growth opportunities for its employees and customers to develop a wider range of leading-edge solutions.
What is Z-Wave?
Z-Wave wireless home technology is an open, internationally recognized ITU standard (G.9959). This technology is at the heart of the Smart home and IoT, providing industry-leading reliability and ease of installation. Represented by the Z-Wave Alliance and supported by more than 600 companies around the world, the standard is a key enabler of smart living solutions for home safety and security, energy, hospitality, office and light commercial applications. Z-Wave® is a registered trademark of Sigma Designs and its subsidiaries in the United States and other countries.
About Silicon Laboratories Inc.
Founded in 1996, Silicon Labs is a leading provider of silicon, software, and solutions for a smarter, more connected world. The Company's technologies are shaping the future of the Internet of Things, Internet infrastructure, industrial automation, consumer and automotive markets. Headquartered in Austin, Texas, Silicon Labs has 1,300 team members in 20 countries creating products focused on performance, energy savings, connectivity, and simplicity.
About Sigma Designs, Inc.
Established in 1982, Sigma Designs is a leading provider of system-on-chip (SoC) solutions used to enable smart home convergence through set top boxes, smart TVs, media connectivity, and IoT devices. Headquartered in Fremont, California, the Company also has sales offices in China, Denmark, Hong Kong, Israel, Japan, Singapore, and Taiwan.
Stock Performance Snapshot
December 11, 2017 - At Monday's closing bell, Silicon Labs' stock was marginally up 0.67%, ending the trading session at $89.95.
Volume traded for the day: 192.82 thousand shares.
Stock performance in the last three-month – up 18.67%; previous six-month period – up 20.82%; past twelve-month period – up 33.36%; and year-to-date - up 38.38%
After yesterday's close, Silicon Labs' market cap was at $3.83 billion.
Price to Earnings (P/E) ratio was at 53.77.
The stock is part of the Technology sector, categorized under the Semiconductor - Integrated Circuits industry. This sector was up 0.6% at the end of the session.
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