Silicon Image to acquire SiBeam

The purchase price of the acquisition will be USD 25.5 million in cash and Silicon Image stock. The proposed transaction is expected to close in the second quarter of 2011. For 2011, the acquisition is anticipated to be dilutive to Silicon Image’s non-GAAP earnings by approximately USD 0.06-0.08 and neutral to earnings for 2012. The company intends to finalize its estimates of the transaction’s financial impact as well as the accounting for the transaction upon deal close. "The acquisition of SiBEAM underscores our stated mission to be the leader in advanced video connectivity solutions and SiBEAM’s 60GHz 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, Inc. "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", he continued. Consistent with its 'standards plus' strategy, Silicon Image plans to continue to promote and actively engage with the WirelessHD Consortium and the WiGiG Alliance to further advance standards development for 60GHz wireless connectivity. Until the deal closes, SiBeam will continue independent operations.