Sigma Designs designs and builds system-on-chip (SoC) solutions for Internet of Things (IoT) smart home devices. These include solutions using the Z-Wave wireless communication protocol, seen as a leading technology for home automation.
"The connected home represents one of the largest market opportunities in the IoT," says Tyson Tuttle, CEO of Silicon Labs. "Today, there is no single dominant wireless technology for home automation, and protocols include Wi-Fi, Bluetooth, ZigBee, Thread, and proprietary. By adding Z-Wave technology to Silicon Labs' connectivity portfolio, we will be better positioned to serve this fast-growing market. Ecosystem providers and developers will have a one-stop shop for wireless connectivity solutions for the home."
Z-Wave smart home IoT products currently comprise more than 2,100 certified, interoperable devices available from more than 600 manufacturers. Silicon Labs says it intends to work in collaboration with the Z-Wave Alliance - a global consortium of over 300 companies - to drive adoption and development of Z-Wave technology.
The Z-Wave protocol was developed by Zensys, a Danish company, in 2001. Sigma Designs acquired Z-Wave in December 2008.
In addition to Z-Wave technology, Sigma Designs also provides media connectivity and smart TV solutions. The company says it plans to divest or wind down its smart TV business and is currently in active discussions to divest its media connectivity business.
Silicon Labs will acquire Sigma Designs in a cash transaction valued at approximately $282 million. If certain closing conditions are not met, the parties have agreed that Sigma Designs would instead sell its Z-Wave business to Silicon Labs for $240 million. The transaction is expected to close in the first calendar quarter of 2018.