Qualcomm to buy British chip maker and Bluetooth specialist CSR for $2.5 bn
16 Oct 2014
Qualcomm Inc yesterday struck a deal to buy British chip maker and Bluetooth specialist CSR Plc for $2.5 billion (£1.6 billion) in cash.
Qualcomm, the world's biggest maker of chips for mobile-phone chips, will pay 900 pence a share, a premium of 56.5 per cent to CSR's share price when US chipmaker Microchip Technology made an undisclosed offer in August.
CSR had in August rejected an undisclosed offer made by Microchip Technology, leading the UK Panel on Takeovers and Mergers to impose a deadline to make a binding offer.
Qualcomm's cash offer has been unanimously recommended by the CSR board of directors and the deal is expected to close by the end of summer 2015.
Cambridge-based CSR, formerly known as Cambridge Silicon Radio, provides platform solutions for Bluetooth, GPS, FM broadcasting, Wi-Fi, audio, imaging, and ARM processors and digital imaging products based on the MIPS architecture.
Its technologies are used in mobile phones, automotive infotainment, telematics systems, personal navigation devices, Bluetooth headset, personal computer, tablets, GPS recreational devices, digital cameras, gaming devices and personal and commercial tracking applications.
California-based Qualcomm is a global leader in developing and commercialising mobile processing and wireless communications technologies.
The acquisition will complement Qualcomm's current offerings by adding products, channels and customers in the important growth categories of Internet of Everything and automotive infotainment.
Commenting on the acquisition, Ron Mackintosh, chairman of CSR, said, "CSR is an innovator in the development of multifunction semiconductor platforms with a focus in the five strategic areas of Automotive Infotainment, Bluetooth Smart, Document Imaging and Voice & Music and the nascent market of Indoor Location. Our solutions are adopted by many of the world's leading technology and consumer focused companies.''
''The CSR Directors believe the Acquisition recognises CSR's long term prospects and growth potential, and takes into account the dynamics of the global market and the competitive landscape in which it operates,'' he added.
