LONDON-- Qualcomm Inc. has pounced on U.K. connectivity chip
specialist CSR PLC in a GBP1.56 billion ($2.5 billion) takeover as
the U.S. wireless-technology group seeds to expand its capabilities
in the fast-growing area of Internet-connected devices.
Qualcomm said CSR's board has accepted a cash offer of 900 pence
a share, equivalent to a near 57% premium to the U.K. company's
share price August 27. CSR rejected a takeover offer from Microchip
Technology Inc. that month.
"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," CSR chairman Ron
Mackintosh said.
CSR, formerly known as Cambridge Silicon Radio, has been hurt in
recent years by exposure to declining areas such as digital cameras
but--through a specialization in Bluetooth technology used to
connect devices with each other--the company has hoped to benefit
from growth in the so-called "Internet of Things," a term used to
describe connecting household devices to the Internet.
"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 Qualcomm
CEO Steven M. Mollenkopf.
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