Qualcomm set to buy UK chipmaker CSR for £1.6bn

US mobile chipmaker says CSR will bring it complementary product categories and channels particularly in Internet of Everything and the automotive sector

Qualcomm set to buy UK chipmaker CSR for £1.6bn

Qualcomm is to acquire UK chipmaker CSR plc for $2.5bn (£1.6bn). The world’s largest mobile chipmaker said that the acquisition complements its current offerings by adding products, channels, and customers in areas such as Bluetooth technology, the Internet of Everything (IoE) and automotive infotainment.

CSR (previously known as Cambridge Silicon Radio) designs but does build chips and components. The company was subject to an acquisition approach from another US firm Microchip in August, which it rejected partly on the grounds that it was seen as a proposed tax inversion deal.

Steve Mollenkopf, chief executive officer of Qualcomm Inc., 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.

“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.”

The acquisition is subject to a number of conditions as set forth in the announcement released in accordance with Rule 2.7 of the UK Takeover Code, including the receipt of U.S. and other regulatory approvals and the approval of CSR’s shareholders.

Subject to the satisfaction of the conditions, the transaction is expected to close by the end of the summer of 2015. Qualcomm expects the acquisition to be accretive to Non-GAAP earnings per share in fiscal 2016, the first full year of combined operations.

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