SAN FRANCISCO—Sigma Designs Inc. said Monday (April 2) it finalized a deal to acquire Trident Microsystems Inc.'s digital television (DTV) business for $21 million in cash, plus the assumption of some liabilities.
Sigma Designs (Milpitas, Calif.) announced last month that it made a "stalking horse" bid for the DTV business of Trident, which filed for Chapter 11 bankruptcy protection in January.
Sigma said Monday it was selected as the successful bidder for the assets of Trident's DTV business. The final cash purchase price remains subject to an adjustment for the closing current asset balance of the DTV business, Sigma said. Sigma's bid remains is subject to the approval of the U.S. Bankruptcy Court for the District of Delaware presiding over Trident's bankruptcy proceedings, Sigma said.
"With this transaction, we will increase our revenue scale, expand our product offerings, and will have the ability to leverage our combined operational resources and OEM relationships across some of the largest high growth connectivity markets," said Thinh Tran, Sigma Designs' chairman and CEO, in a statement. "We are focused on successfully growing the DTV business and our existing business and believe the outcome of this transaction will provide long-term benefits to our customers, employees and shareholders."
The transaction is expected to close during the second quarter, Sigma said.