Blog Exposure - Silicon Labs to Acquire Sigma Designs for $282 Million
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:
www.active-investors.com/registration-sg
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Silicon Laboratories most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage SLAB and SIGM are available at:
www.active-investors.com/registration-sg/?symbol=SLAB
www.active-investors.com/registration-sg/?symbol=SIGM
Agreement Insights
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.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charter-holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors
