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Silicon Image (SIMG) to Acquire SiBEAM for $25.5M

Silicon Image Inc., a leader in advanced, interoperable HD connectivity solutions for consumer electronics, has signed a definitive agreement to acquire privately-held SiBEAM Inc., a fabless semiconductor company headquartered in Sunnyvale, Calif., for $25.5 million in cash and Silicon Image stock.

SiBEAM is the leading provider of high-speed wireless communication products for uncompressed HD video in consumer electronics and personal computer applications. The company is also a founding member of the WirelessHD™ Consortium and an active member of the Wireless Gigabit Alliance (WiGig™).

“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,” Camillo Martino, CEO of Silicon Image stated in the press release. “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.”

John LeMoncheck, president and CEO of SiBEAM, said Silicon Image’s position in the marketplace will enhance SiBEAM’s products in the future.

“Silicon Image’s market leadership in developing and scaling consumer and PC solutions will help accelerate the growth of SiBEAM’s 60GHz products,” LeMoncheck stated. “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.”

The proposed transaction is expected to close in the second quarter of 2011. Silicon Image said the acquisition is anticipated to be dilutive to Silicon Image’s 2011 non-GAAP earnings by approximately $0.06 – $0.08 and neutral to earnings for 2012.

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