Sigma Designs, a manufacturer of components for IPTV set-top boxes and other devices, plans to acquire home-networking chip supplier CopperGate Communications in a cash-and-stock deal valued at $160 million.
CopperGate, based in Tel Aviv, Israel, provides of silicon-based modem solutions to distribute broadband digital content over coax, phone or power-line home networks. To date, CopperGate has shipped more than 12 million chips that enable HomePNA phoneline networking.
Sigma Designs, which is based in Milpitas, Calif., said CopperGate's portfolio will expand its footprint with key customers and enable cross-selling opportunities.
"CopperGate has proven itself a leader in the IPTV market," Sigma Designs CEO Thinh Tran said, adding that the deal "provides substantial benefits to our existing business while positioning our combined company to offer superior value solutions for the future."
The companies said the combination of Sigma and CopperGate also is expected to yield potential synergies including leveraging manufacturing know-how and combining research and development. The acquisition has been approved by the boards of each company, and the deal is expected to close in 45 to 60 days. UBS Securities is acting as Sigma's exclusive financial advisor.