Sigma Designs To Begin Liquidation Plan; To Sell Z-Wave Business To Silicon Labs

(RTTNews) - Sigma Designs, Inc. (SIGM) announced the sale of its Z-Wave business to Silicon Labs (SLAB) for $240 million in an asset transaction, due to the initial closing conditions in the previously announced definitive agreement with Silicon Labs for the acquisition of the entirety of Sigma Designs not being satisfied.

Sigma Designs also announced that it intends to initiate a plan of liquidation following the closing of the asset transaction.

Sigma Designs said it is exploring alternatives to increase the available cash for distribution to shareholders through divestment of additional businesses, including its Home Connectivity business, its Mobile IoT business, remaining assets of its Smart TV and Set-top Box businesses and other assets. Sigma is currently in active conversations regarding the divestment of additional businesses and assets.

Sigma already has initiated certain actions, including a wind-down process for its Smart TV and Set-top Box business to reduce such business' workforce from 416 to 120 employees. Sigma Designs intends to wind down or divest its remaining businesses over the next 12 months.

Sigma Designs expects that the asset transaction would close in either the late first or early second calendar quarter of 2018, contingent upon such shareholder approval.