MILPITAS, Calif.--(BUSINESS WIRE)--Sigma Designs®, Inc. (NASDAQ:SIGM) (“Sigma”), a leading provider of highly integrated system-on-chip, or SoC, solutions used to deliver multimedia entertainment throughout the home, today announced the completion of its acquisition of CopperGate Communications Ltd. (“CopperGate”).
“We are pleased to announce the completion of the acquisition of CopperGate. The combination of Sigma and CopperGate creates a leading provider of networked home entertainment semiconductor solutions,” said Thinh Tran, Sigma’s Chief Executive Officer. “I am also extremely excited to welcome Gabi Hilevitz, CopperGate’s President and CEO, and the rest of the talented CopperGate team to the Sigma family.”
Under the terms of the acquisition agreement, which was previously announced on October 13, 2009, Sigma has acquired all of the outstanding share capital of CopperGate for a cash payment of approximately $116 million and the issuance to CopperGate shareholders of an aggregate of approximately 3.9 million shares of Sigma common stock. Under the terms of the acquisition agreement, Sigma also assumed outstanding unvested options held by CopperGate employees and agreed to make an additional cash payment of up to $5 million to specified CopperGate employees upon attainment of specified milestones.
Except for the historical information set forth herein, the matters set forth in this press release, including without limitation statements regarding the anticipated benefits for Sigma from the acquisition of CopperGate, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, including, but not limited to, difficulties in the integration of acquired businesses, the risk that the benefits from the transaction may not be fully realized or may take longer to realize than expected disruption from the transaction making it more difficult to maintain relationships with customers, employees or suppliers, competition and its effect on pricing, third-party relationships and revenues, and the risks detailed in Sigma’s Quarterly Reports on Form 10-Q for the quarter ended August 1, 2009, as filed with the SEC, and in other reports filed with the SEC by Sigma from time to time. These forward-looking statements speak only as of the date hereof. Sigma disclaims any obligation to update these forward-looking statements.
About Sigma Designs, Inc.
Sigma Designs is a leading fabless provider of highly integrated SoC solutions that are used to deliver multimedia entertainment throughout the home. Sigma’s SoC solutions include media processors and wireless communication devices which combine semiconductors and software as critical components of high-growth consumer applications including IPTV-based set-top boxes, Blu-ray players, HDTVs, entertainment connectivity devices and RF-based home control devices. Headquartered in Milpitas, Calif., Sigma Designs also has design centers or sales offices in Canada, China, Denmark, France, Japan, Korea (third party), Singapore and Taiwan. For more information, please visit Sigma Designs’ website at www.sigmadesigns.com.
CopperGate Communications is the only company whose standards-based chipsets enable carrier-class distribution of broadband digital content over all three types of existing wires in the home: coax, phone, and power. The company sells its technology to OEMs who build solutions for multimedia home networking and multi-dwelling unit (MDU) broadband access markets. CopperGate's chips are used in set-top boxes, residential gateways, optical network terminators and Ethernet bridges. CopperGate is headquartered in Tel Aviv, Israel with offices in the United States, Taiwan, Korea, China, Japan, and Brazil. For more information, please visit CopperGate’s website at www.copper-gate.com.