Sigma Designs Signs Agreement to Purchase Trident's Digital Television Business
MILPITAS, CA -- (MARKET WIRE) -- 03/21/12 -- Sigma Designs®, Inc. (NASDAQ: SIGM), a leading provider of connected media platforms, today announced that it has signed an asset purchase agreement to serve as the "stalking horse" bidder to acquire certain assets of Trident Microsystems, Inc.'s Digital Television (DTV) Business, which includes certain products, licensed intellectual property, software and leased facilities, for $21 million in cash plus assumption of specified liabilities upon the closing of the transaction. The purchase price is subject to an adjustment for the closing current asset balance of the DTV Business to the extent the closing current assets differ from a target current asset balance.
As a leading provider of products and solutions for connected media platforms, the proposed DTV acquisition will significantly expand Sigma's served available market through the addition of Trident's industry-leading DTV media processor System-on-a-Chip (SoC) products for next-generation Internet-enabled digital televisions. The DTV products complement Sigma's existing IPTV set-top-box and connected media player SoC solutions, and will augment the Company's ability to develop truly innovative solutions for the anticipated convergence of IP-video delivery across any device within the home.
The asset purchase agreement has been filed with the United States Bankruptcy Court for the District of Delaware and is subject to a court-approved bidding and auction process in accordance with Section 363 of the U.S. Bankruptcy Code. The potential auction and final sale hearing for the assets is expected to be held within the next several weeks. Sigma expects to make employment offers to certain employees of Trident DTV Business, most of whom are located in China. If Sigma is selected as the winning bidder at the auction, it will hold a conference call to discuss the transaction, which is anticipated to close in the second calendar quarter of 2012. Sigma Designs (SIGM) estimates the transaction, if entered into, will generate positive non-GAAP EBITDA in the first full year of operations after closing.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding anticipated benefits of Sigma's acquisition of the DTV Business from Trident Microsystems and the anticipated timing of bankruptcy related events impacting the sale process. Actual results may vary materially due to a number of factors including, but not limited to, the risk that, the acquisition by Sigma will not be completed as a result of the competitive auction process or otherwise, the risk that Trident's DTV Business will deteriorate before the acquisition is closed as a result of the bankruptcy or for other reasons; the risk that Sigma's efforts to operate the DTV Business will not be successful and that Sigma may be required to invest substantially more in the DTV Business than presently anticipated, the risks and management distraction associated with integrating a business that has significant international operations, new customers and new technology, risks that Sigma's systems and infrastructure may not be adequate to effect a rapid and orderly transition of the business and transferred employees from Trident to Sigma; risks associated with entering into a new business; technology risks; competition; the risk that the market for DTV solutions may not develop as Sigma anticipates, and risks associated with Sigma's ability to deploy and achieve market acceptance for DTV products. Additional risk factors are detailed from time to time in Sigma's SEC reports, including Sigma's quarterly report on Form 10-Q as filed December 8, 2011. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Sigma undertakes no obligation to publicly release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Sigma Designs, Inc.
Sigma Designs, Inc. is a world leader in connected media platforms. The company designs and builds the essential semiconductor technologies that serve as the foundation for the world's leading IPTV set-top boxes, connected media players, residential gateways, home control systems and more. For more information about Sigma Designs, please visit www.sigmadesigns.com .
Sigma Designs and the Sigma Designs logo are either registered trademarks or trademarks of Sigma Designs, Inc. and its subsidiaries in the United States and other countries. All other trademarks mentioned herein are believed to be trademarks of their respective owners.
Investor Relations Contact: Ed McGregor Director of Investor Relations Sigma Designs, Inc. Tel: (646) 259-2999 IR@sigmadesigns.com
Source: Sigma Designs, Inc.