Austin-based Silicon Labs is acquiring Sigma Designs, a publicly-traded smart home and IoT company based in Fremont, Calif.

Silicon Labs (NASDAQ: SLAB) said it will pay $7.05 per share in a cash transaction that totals about $282 million.

Silicon Labs made the acquisition to add Sigma’s Z-Wave business unit, which creates mesh networks for smart home devices.

“The connected home represents one of the largest market opportunities in the IoT,” Tyson Tuttle, CEO of Silicon Labs, said in a news release. “Today, there is no single dominant wireless technology for home automation, and protocols include Wi-Fi, Bluetooth, Zigbee, Thread and proprietary. By adding Z-Wave technology to Silicon Labs’ connectivity portfolio, we will be better positioned to serve this fast-growing market.”

As part of the deal, Sigma Designs (NASDAQ:SIGM) plans to close down or divest its Smart TV business, and it’s in active talks with other companies about a deal.

If the deal falls through, Sigma will still agree to sell its Z-Wave business to Silicon Labs. That would represent $240 million of the $282 million deal.

This would be Silicon Labs’ 19th acquisition, according to CrunchBase. Silicon Labs was founded in 1996 and IPOed in 2000.

Tuttle plans to discuss the transaction during a live webcast and conference call Friday morning at 7:30 a.m.