Freescale Snaps Up SigmaTel

Freescale Semiconductor, plotting a future in digital media, agreed to buy SigmaTel (SGTL Quote) 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) iPods.

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