AUSTIN, Texas and FREMONT, Calif., April
18, 2018 /PRNewswire/ -- Silicon
Labs (NASDAQ: SLAB) and Sigma Designs, Inc. (NASDAQ: SIGM) today
announced the completion of Silicon Labs' acquisition of Sigma
Designs' Z-Wave business, including a team of approximately 100
employees, for $240 million in an
all-cash transaction.
Z-Wave is a leading mesh networking technology for the smart
home. More than 2,400 certified, interoperable Z-Wave devices are
available from the thriving Z-Wave Alliance of more than 700
manufacturers and service providers worldwide.
Combining Z-Wave's mesh technology and product interoperability
focus with Silicon Labs' multiprotocol expertise gives smart home
developers access to a large, varied network of ecosystems and to a
full range of end-node technology options that open the door to
millions of potential smart home users. The strategic acquisition
complements Silicon Labs' comprehensive wireless hardware and
software portfolio for the smart home, which today includes Wi-Fi®,
Zigbee®, Thread, Bluetooth® and proprietary protocols.
"Adding Z-Wave to Silicon Labs' extensive IoT connectivity
portfolio allows us to deliver a unified vision for the wireless
technologies underpinning the smart home market," said Tyson Tuttle, CEO of Silicon Labs. "A secure,
interoperable customer experience is at the heart of how smart home
products are designed, deployed and managed. Our smart home vision
is one where multiple technologies work securely together, where
any device using any of our connectivity options easily joins the
home network, and where security updates and feature upgrades occur
automatically."
"Together, Silicon Labs and the Z-Wave Alliance and its
ecosystems will continue to advance the Z-Wave technology roadmap,
delivering innovations that engage millions of smart home product
users," said Raoul Wijgergangs, Vice President and General Manager
of Z-Wave. "Z-Wave is a proven, broadly deployed technology that
just reached the milestone of 100 million devices in the market.
The acquisition will drive collaboration and expand access to a
diverse ecosystem network of partners including Amazon, Alarm.com,
ADT, Samsung SmartThings, Yale, Vivint,
Google Home and Comcast."
"We are pleased Sigma's shareholders overwhelmingly approved the
sale of our Z-Wave business to Silicon Labs," said Elias Nader, Interim President and CEO, and CFO
of Sigma Designs. "This asset sale is a significant milestone in
the process to return capital to our shareholders as soon as
feasible."
Silicon Labs expects the acquisition to be accretive to 2018
non-GAAP earnings. Additional financial details and guidance will
be provided in Silicon Labs' first quarter fiscal 2018 earnings
call on April 25, 2018, at
7:30 a.m. Central Time.
About Z-Wave
Z-Wave® technology is an open, internationally
recognized ITU standard (G.9959). It is one of the leading wireless
smart home technologies in the market today, with more than 2,400
certified interoperable products worldwide. Represented by the
Z-Wave Alliance and supported by more than 700 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.
Sigma Designs
Sigma Designs, Inc.® (NASDAQ: SIGM) is developing
technology for use in the mobile Internet of Things (IoT) market.
For more information about Sigma Designs, please visit
www.sigmadesigns.com.
Silicon Labs
Silicon Labs (NASDAQ: SLAB) is a leading provider of silicon,
software and solutions for a smarter, more connected world. Our
award-winning technologies are shaping the future of the Internet
of Things, Internet infrastructure, industrial automation, consumer
and automotive markets. Our world-class engineering team creates
products focused on performance, energy savings, connectivity and
simplicity. www.silabs.com
Non-GAAP Financial Measures
In addition to GAAP reporting, Silicon Labs provides investors
with certain information on a non-GAAP basis, including anticipated
accretion. This non-GAAP information excludes stock compensation,
amortization of acquired intangible assets, non-cash interest
expense on convertible notes, and certain other items. Management
does not believe that the excluded items are reflective of the
Company's underlying performance. The exclusion of these and other
similar items from Silicon Labs' non-GAAP presentation should not
be interpreted as implying that these items are non-recurring,
infrequent or unusual. Silicon Labs believes this non-GAAP
financial information provides additional insight into the
Company's ongoing performance and has therefore chosen to provide
this information to investors for a more consistent basis of
comparison and to help them evaluate the results of the Company's
on-going operations and enable more meaningful period to period
comparisons. These non-GAAP measures are provided in addition to,
and not as a substitute for, or superior to, measures of financial
performance prepared in accordance with GAAP. Silicon Labs is not
readily able to reconcile the projected accretion information
provided herein to a GAAP calculation thereof because the
information needed to complete a reconciliation is unavailable at
this time without unreasonable effort.
Forward-Looking Statements
This announcement contains forward-looking statements (including
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended, and Section 27A of the United
States Securities Act of 1933, as amended) concerning Silicon Labs
("Silicon Labs") and its acquisition (the "Acquisition") of Sigma
Designs' Z-Wave business and related matters. These statements
include, but are not limited to, statements that address Silicon
Labs' expected future business and financial performance and
statements about (i) the expected benefits of the Acquisition, (ii)
plans, objectives and intentions with respect to future operations
and products, (iii) competitive position and opportunities, (iv)
the impact of the Acquisition on the market for Silicon Labs
products, (v) the impact of the Acquisition on non-GAAP EPS, (vi)
other information relating to the Acquisition and (vii) other
statements identified by words such as "will", "expect", "intends",
"believe", "anticipate", "estimate", "should", "intend", "plan",
"potential", "predict", "project", "aim", and similar words,
phrases or expressions. These forward-looking statements are based
on current expectations and beliefs of the management of Silicon
Labs, as well as assumptions made by, and information currently
available to, such management, current market trends and market
conditions and involve risks and uncertainties, many of which are
outside the companies' and management's control, and which may
cause actual results to differ materially from those contained in
forward-looking statements. Accordingly, you should not place undue
reliance on such statements.
Particular uncertainties that could materially affect future
results include any risks associated with the Acquisition such as:
(1) litigation relating to the transaction; (2) risks that the
transaction disrupts the operations of Silicon Labs; (3) the
ability of Silicon Labs to retain and hire key personnel; (4)
unexpected costs, charges or expenses resulting from the
transaction; (5) potential adverse reactions or changes to business
relationships resulting from the completion of the transaction; (6)
Silicon Labs' ability to achieve the growth prospects and synergies
expected from the transaction, as well as delays, challenges and
expenses associated with integrating Sigma Designs into Silicon
Labs' existing businesses; and (7) legislative, regulatory and
economic developments.
The foregoing review of important factors that could cause
actual events to differ from expectations should not be construed
as exhaustive and should be read in conjunction with Silicon Labs'
and filings with the Securities and Exchange Commission ("SEC"),
which you may obtain for free at the SEC's website at
http://www.sec.gov, and which discuss additional important risk
factors that may affect their respective businesses, results of
operations and financial conditions. Silicon Labs undertakes no
intent or obligation to publicly update or revise any of these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Note to editors: Silicon Labs, Silicon Laboratories, the "S"
symbol, the Silicon Laboratories logo, the Silicon Labs logo and
Z-Wave are trademarks of Silicon Laboratories Inc. All other
product names noted herein may be trademarks of their respective
holders.
Connect with Silicon Labs
Silicon Labs Investor Relations: Jalene
Hoover +1-512-428-1610, jalene.hoover@silabs.com
Silicon Labs Public Relations: Dale
Weisman +1-512-532-5871, dale.weisman@silabs.com
Connect with Sigma Designs
Sigma Designs Investor Relations: Jim
Fanucchi, Darrow Associates, Inc., +1-408-404-5400,
IR@sigmadesigns.com
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SOURCE Silicon Labs; Sigma Designs, Inc.