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Freescale Snaps Up SigmaTel

The wireless chip maker moves into digital media with a $110 million deal.

Freescale Semiconductor

, plotting a future in digital media, agreed to buy

SigmaTel

(SGTL)

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

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Apple's

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iPods.

The news comes just days after Freescale's largest customer,

Motorola

(MOT)

, announced that it was exploring the

possible sale of its mobile phone business.