Transaction Will Create a Leading Provider of Semiconductor Solutions for MFPs and Facsimile Imaging Applications
NEWPORT BEACH, Calif. -- July 8, 2008 – Conexant Systems, Inc. (NASDAQ: CNXTD) today announced that it signed a definitive agreement with Freescale Semiconductor to acquire its “SigmaTel” multi-function printer (MFP) imaging product lines. The single-chip solutions were developed by SigmaTel, Inc., which was a leading provider of broad-based MFP imaging solutions prior to its acquisition by Freescale. Multi-function printers feature copy, fax, and scan capabilities. When the transaction is completed, Conexant will be a leading provider of semiconductor solutions for MFP and facsimile imaging applications. The transaction is subject to customary closing conditions, and is expected to close within the next 30 days. Terms of the agreement were not disclosed.
“When we complete the acquisition of Freescale’s SigmaTel MFP imaging product lines, Conexant will be a leading supplier of innovative solutions to the highgrowth MFP market segment,” said Bernd Lienhard, senior vice president and general manager of Conexant’s Imaging and PC Media business. “We will also strengthen our imaging product and technology portfolio, and broaden our customer base. In addition, we gain a dedicated and experienced design team that will enable us to accelerate the introduction of advanced imaging solutions.”
More than 50 Freescale employees, primarily based in Waltham, Massachusetts, are expected to join Conexant’s Imaging and PC Media (IPM) group when the transaction closes. The design team has extensive expertise in printer and imaging technologies, and has developed and delivered solutions with industry-leading processing speeds to major printer manufacturers worldwide.
According to industry estimates, shipments of MFPs are expected to increase from approximately 73 million units in 2007 to more than 115 million units in 2011, an increase of nearly 60 percent.
Conexant will also acquire Freescale’s SigmaTel digital photo frame product lines, which allow users to view and share photos from traditional digital cameras, camera phones, and photo-sharing Web sites on high-resolution LCD displays. SigmaTel’s multimedia applications processor technology will be excluded from the acquisition.
Conexant is currently the No.1 provider of semiconductor solutions for facsimile applications. When the transaction is completed, the company’s comprehensive imaging product offering will include fax system-on-chip (SoC) and datapump solutions, highly integrated MFP SoCs for inkjet, laser, and photo printers, and high-performance system solutions for digital photo frames.
Conexant’s comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of $809 million in fiscal year 2007. The company is headquartered in Newport Beach, Calif. To learn more, please visit www.conexant.com.