Freescale Snaps Up SigmaTel

Freescale Semiconductor, plotting a future in digital media, agreed to buy SigmaTel (SGTL Quote - Cramer on SGTL - Stock Picks) in a $110 million deal.

Freescale, a wireless chip maker that was taken private last year, said Monday that it will pay $3 share for Austin, Texas-based SigmaTel. The deal represents a 67% premium over SigmaTel's closing price of $1.79 Friday.

Shares of SigmaTel surged 52% in pre-market trading Monday.

SigmaTel makes semiconductors for a variety of consumer devices, including media players and some models of Apple's (AAPL Quote - Cramer on AAPL - Stock Picks) iPods.

The news comes just days after Freescale's largest customer, Motorola (MOT Quote - Cramer on MOT - Stock Picks), announced that it was exploring the possible sale of its mobile phone business.