QUALCOMM, Inc. (NASDAQ:QCOM) announced today that the company has reached a definitive agreement with CSR Plc (LON:CSR) to acquire the UK chip maker for $2.5 billion cash. The London chipmaker would work under Qualcomm’s subsidiary unit, Qualcomm Global Trading Pte. Ltd.
This acquisition would help the Snapdragon chipmaker to expand its global presence and aid its strategies in the transforming chip markets. Both the companies have agreed for per share value of £9.00 for its issued and to be issued ordinary shares in future, which would put the deal at roughly £1.6 billion or $2.5 billion. CSR Plc (LON:CSR) have agreed to the terms of cash acquisition and after the regulatory approvals in both the countries, the transaction is supposed to be closed by Summer 2015.
Steve Mollenkopf, CEO of QUALCOMM, Inc. (NASDAQ:QCOM), said,
“The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart1 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.”
One thing is clear the chipmaker is likely to acquire more companies under its growth strategy and talking about the growth prospect of the company, Mollenkopf added, “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 Plc (LON:CSR) said that its shareholders are likely to receive up to 900 pence for every single shares of the company.
Ron Mackintosh, Chairman of CSR, said,
“While the CSR Directors believe that CSR is now strongly positioned to execute its strategy of delivering growth and sustainable returns in the medium and long term, we believe that the offer from Qualcomm provides CSR Shareholders with an immediate and certain value which is highly attractive. 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.”
This article has been written by Prakash Pandey.