Silicon Image Signs Definitive Agreement to Acquire SiBEAMThursday, April 14th, 2011
60GHz Multi-Gigabit Wireless Technology Expands Silicon Image’s HD Connectivity Product Portfolio
SUNNYVALE, Calif. — Silicon Image, Inc. (NASDAQ: SIMG), a leader in advanced, interoperable HD connectivity solutions for consumer electronics, today announced the signing of a definitive agreement to acquire privately-held SiBEAM, Inc., a fabless semiconductor company headquartered in Sunnyvale, CA. SiBEAM is the leading provider of high-speed wireless communication products for uncompressed HD video in consumer electronics and personal computer applications, a founding member of the WirelessHD™ Consortium and an active member of the Wireless Gigabit Alliance (WiGig™).
The purchase price of the acquisition will be $25.5 million in cash and Silicon Image stock. The proposed transaction is expected to close in the second quarter of 2011. For 2011, the acquisition is anticipated to be dilutive to Silicon Image’s non-GAAP earnings by approximately $0.06 – $0.08 and neutral to earnings for 2012. The company intends to finalize its estimates of the transaction’s financial impact as well as the accounting for the transaction upon deal close.
“The acquisition of SiBEAM underscores our stated mission to be the leader in advanced video connectivity solutions and SiBEAM’s 60GHz wireless technology will enable us to rapidly bring the highest quality of wirelessly transmitted HD video and audio to market,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “Silicon Image has a proven history of establishing successful global connectivity standards, including DVI®, HDMI®, and most recently MHL™ and we are looking forward to driving WirelessHD as a global connectivity standard and to delivering “standards plus” products supporting both wireless and wired HD connectivity standards.”
SiBEAM’s wireless technology has the ability to deliver true uncompressed, lossless high-definition digital video for a broad range of consumer electronics and personal computer applications. The company’s 60GHz Radio Frequency (RF) technology with multi-gigabit data rates offers the highest throughput of any mass market wireless solution available today and is compliant with both the WirelessHD and WiGig standards.
“Silicon Image’s market leadership in developing and scaling consumer and PC solutions will help accelerate the growth of SiBEAM’s 60GHz products,” said John LeMoncheck, president and chief executive officer at SiBEAM, Inc. “Increasingly, CE, PC, and mobile device manufacturers are looking towards 60GHz solutions for high-speed A/V and data connectivity. The combination of SiBEAM’s wireless technology with Silicon Image’s strength in HD connectivity solutions for mobile and consumer platforms makes this acquisition a natural fit for both companies.”
Consistent with its “standards plus” strategy, Silicon Image plans to continue to promote and actively engage with the WirelessHD Consortium and the WiGiG Alliance to further advance standards development for 60GHz wireless connectivity.
Until the deal closes, SiBEAM will continue independent operations.