Qualcomm announced that it has agreed to acquire chip maker CSR for $2.5 billion in cash as part of its continuing strategy to dominate the electronics in mobile devices.
San Diego, Calif.-based Qualcomm will add a wide variety of chip products to its growing portfolio in the Internet of things, automotive electronics, and mobile communications.
CSR, based in Cambridge, England, has chip businesses in categories like Bluetooth chips and navigation. It has also branched into automotive infortainment and the “Internet of everything,” also known as the Internet of things, where it puts smart computing and connectivity into everyday devices.
At £9.00 (approx. $14) per share, the acquisition of CSR is valued at approximately £1.6 billion (roughly $2.5 billion). This cash offer has been unanimously recommended by the CSR board. The deal is subject to closing conditions, such as regulatory approvals. Qualcomm is likely to face scrutiny from regulators, as the company is dominant in various kinds of mobile chips. The deal is expected to close by the summer of 2015.
“The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart, and audio processing will strengthen Qualcomm’s position in providing critical solutions that drive the rapid growth of the Internet of everything, including business areas such as portable audio, automotive, and wearable devices,” said Steve Mollenkopf, chief executive of Qualcomm, in a statement. “Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth. We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK.”
CSR turned down an acquisition offer from Microchip Technology, a maker of microcontrollers. But apparently, with Qualcomm, the price was right.