Silicon Image, Inc. (NASDAQ:SIMG), a provider of advanced, interoperable wired and wireless HD connectivity solutions, today announced that it has completed the acquisition of SiBEAM, Inc., a developer of 60GHz multi-gigabit wireless communication technology for consumer electronics and personal computer applications, and a founding member of the WirelessHD® Consortium.
Silicon Image acquired SiBEAM for $25.5 million, consisting of approximately $14.9 million in cash and approximately 1.3 million shares of Silicon Image common stock. The acquisition is expected to be dilutive to Silicon Image’s non-GAAP earnings in 2011 by approximately $0.06 - $0.08 and to be neutral to non-GAAP earnings in 2012.
“The SiBEAM acquisition supports our long-term growth strategy to offer a full range of HD connectivity options based on wired and wireless industry standards,” said Camillo Martino, chief executive officer of Silicon Image, Inc. “SiBEAM’s 60GHz Radio Frequency (RF) technology complements our HD connectivity portfolio by adding WirelessHD-compliant semiconductor products that deliver the highest throughput of any mass market wireless solution available today.”
As a result of the acquisition, Silicon Image’s headcount will increase by approximately 50 people to a total worldwide headcount of approximately 500 employees. SiBEAM’s high-speed wireless communication products will be integrated into Silicon Image’s newly formed Wireless Division, headed by John LeMoncheck, former president and chief executive officer of SiBEAM and Silicon Image’s new vice president and general manager, Wireless Division, reporting to Mr. Martino.
“We are excited to be part of the Silicon Image team and are looking forward to delivering a world class wireless product portfolio that combines the strengths of SiBEAM’s 60GHz technology with Silicon Image’s leadership in HD connectivity products,” said John LeMoncheck.
For more information about 60GHz multi-gigabit wireless technology as well as details on products compliant with both the WirelessHD and Wireless Gigabit Alliance (WiGig™) standards, visit http://www.siliconimage.com/.
