LONDON – Silicon Image Inc., a supplier of high-definition connectivity ICs, has announced it has agreed to acquire privately-held SiBeam Inc. for $25.5 million in cash and Silicon Image stock.
SiBeam (Sunnyvale, Calif.) was founded in 2004 by a team of engineers from the Berkeley Wireless Research Center and communications industry veterans. The company developed 60-GHz chipsets using CMOS technology for use with high bandwidth services such as uncompressed HD video distribution.
SiBeam raised about $114 million over multiple rounds from such venture capital companies as New Enterprise Associates, US Venture Partners and Foundation Capital and is founding member of the WirelessHD Consortium and an active member of the Wireless Gigabit Alliance (WiGig).
The proposed transaction is expected to close in the second quarter of 2011, Silicon Image said.
"The acquisition of SiBeam underscores our stated mission to be the leader in advanced video connectivity solutions and SiBeam's 60-GHz wireless technology will enable us to rapidly bring the highest quality of wirelessly transmitted HD video and audio to market," said Camillo Martino, chief executive officer of Silicon Image, in a statement. "Silicon Image has a proven history of establishing successful global connectivity standards, including DVI, HDMI, and most recently MHL and we are looking forward to driving WirelessHD as a global connectivity standard and to delivering standards-plus products supporting both wireless and wired HD connectivity standards."
"Increasingly, CE, PC, and mobile device manufacturers are looking towards 60-GHz solutions for high-speed A/V and data connectivity. The combination of SiBeam's wireless technology with Silicon Image's strength in HD connectivity solutions for mobile and consumer platforms makes this acquisition a natural fit for both companies," said John LeMoncheck, president and chief executive officer at SiBeam, in the same statement.
Silicon Image said it plans to continue to promote and actively engage with the WirelessHD Consortium and the WiGig Alliance to further advance standards development for 60-GHz wireless connectivity.
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