Freescale Semiconductor has entered into a definitive agreement with SigmaTel to acquire the mixed-signal fabless semiconductor company for $3 per outstanding share, representing approximately $110 million in cash value. 

“The SigmaTel acquisition enhances the long-term, strategic value we can deliver to our customers,” said Lynelle McKay, Senior Vice President and General Manager of Freescale's Networking and Multimedia Group. “Freescale’s proven strengths in the high- performance multimedia and general purpose markets are complemented by SigmaTel’s strong analog and mixed-signal expertise in the portable media player and consumer audio markets.”

“The increased demand for feature rich, always-connected consumer electronics devices is driving manufacturers to look for platform-based solutions that will accelerate time to market,” said Phil Pompa (pictured), President and CEO of SigmaTel. “With the addition of SigmaTel, Freescale is the obvious choice for these next-generation devices."

According to Reuters, SigmaTel has through March 4, 2008 for other parties to engage in a possible acquisition of the company