Silicon Labs/Sigma Designs Could Be IoT 'Breakthrough,' Says Analyst; Deal Restructured
Silicon Labs' buy of Sigma Designs took a detour when Sigma failed to sell its TV business, said Silicon Chief Financial Officer John Hollister on a Wednesday earnings call. The takeover (see 1712180058) is now structured as an “asset transaction”…
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for $240 million, subject to Sigma shareholder OK, the buyer said last week. The deal could bring a “breakthrough in smart home device interoperability,” blogged Futuresource analyst Filipe Oliveira Wednesday, boosting the growing $6 billion smart home industry. Silicon Labs CEO Tyson Tuttle pegged current IoT market revenue at $8 billion, rising to $13 billion in the next five years. Silicon Labs/Sigma could solve the interoperability problem caused by a “proliferation” of protocols like Zigbee, Z-Wave, Thread, Wi-Fi, Bluetooth and DECT-ULE, he said. Z-Wave is the primary standard used by security and monitoring systems and is used by Yale, ADT and Comcast’s Xfinity Home. The buyer also reported Q4 sales rose to $201 million from $183 million in the 2016 quarter on a $4.8 million loss vs. $20 million profit.