SigmaTel buys Rio portable MP3 player line
EE Times Online
SAN FRANCISCO — SigmaTel Inc. said it has agreed to acquire semiconductor
supplier Protocom Corp. and, in a separate transaction, the software, patents
and engineering resources associated with D&M Holdings Inc.'s Rio portable audio
product line.
SigmaTel (Austin, Texas) signed a definitive agreement to acquire Protocom, a
privately held provider of semiconductors to the multi-function imaging market,
for $47 million in cash and stock. SigmaTel said the acquisition would provide
key technologies applicable to its core audio business, give the company its
first imaging applications product line and provide technology that can be
leveraged into several emerging multimedia consumer electronics markets.
SigmaTel paid an undisclosed amount of cash to D&M Holdings for the Rio assets.
SigmaTel said this acquisition would combine Rio's Cambridge, England-based
design team with SigmaTel's existing designers. The company said the acquisition
also broadens SigmaTel's intellectual property (IP) base, particularly in the
expanding hard disk drive (HDD) MP3 player market segment.
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