Sigma Designs (Nasdaq:SIGM), a supplier of digital media processor SoC's for consumer electronics, is planning to purchase Zensys Holdings, a wireless start-up company. Zensys, headquartered in Fremont, California, is a developer of single-chip RF solutions called Z-Wave® that has been designed into over 250 smart home products world-wide. The deal is to be done with a cash payment.  The amount was not disclosed.

Consumers throughout the world have been embracing an increasing number of devices placed under electronic control in their homes. As more of these disparate devices come into the home, the various types of technologies used by manufacturers have provided limited interoperability, creating a confusing landscape for the consumer. Moving to the next generation, home products are trending toward more intelligent solutions that are interoperable as well as accessible through the Internet. Although wireless RF is commonly regarded as the base technology for these next generation home products, there is a need for a universal RF standard that establishes a common protocol for remote control and monitoring coupled with a simple, low-cost RF implementation that enables widespread use.

In response to this market situation, Zensys has developed Z-Wave®, a solution designed to provide manufacturers with an intelligent and interoperable standard that has been incorporated into over 250 household products by more than 60 world-class suppliers Z-Wave® establishes a wireless mesh network that transforms virtually any electronic device into an intelligent networked device that can be controlled and monitored wirelessly, and can seamlessly interact with other home devices and systems. These networked devices can then be accessed through a gateway or set-top box to enable Internet based monitoring and control of the entire range of devices in the home. The devices are implemented using a family of low-cost, low-power integrated RF transceiver chips embedded with Z-Wave®, along with a suite of development tools and services designed to make it easy to create compelling wireless consumer products. These products include home audio/video entertainment, lighting and appliance control, energy management, access and security control, and building automation, among others.

Zensys was founded in 1999 to develop wireless solutions for the emerging home automation and remote control markets. Over its 10-year history, Zensys has developed a line of RF transceiver chips and the Z-Wave® wireless mesh network ecosystem, which has been designed into more household products than any other competing standard. The Z-Wave® Alliance, an industry consortium founded by Zensys, administers and promotes this standard. Zensys is currently shipping over a million RF transceiver chips per year into a widening range of consumer devices.

Upon completion of the acquisition, Zensys' headquarters will be physically merged into the headquarters of Sigma Designs in the neighboring city of Milpitas. Zensys also has an R&D center located in Copenhagen, Denmark, housing all engineering and operations personnel, which will remain in place. The group currently employs 33 people, 23 of which are engineers.

Earlier this year, Panasonic made a stratetic investment in the firm. Previous investors include Intel Capital, Cisco, Bessemer Venture Partners, Palamon Capital Partners and Sunstone Capital. 

Zensys' president is Tony Shakib.  he served as the GM for Access and Networking Business Units at Centillium Communications. Prior to Centillium Communications, he was president and CEO of AOptix Technologies and GM of the Broadband Access Division at Nortel Networks.

Contact:
Thinh Tran, chairman and CEO, Sigma Designs, www.sigmadesigns.com
Tony Shakib, president and CEO, Zensys, www.zen-sys.com