Mobile chipmaker Qualcomm has agreed to acquire UK-based chipmaker CSR for £1.6 billion ($2.5 billion) in its continuous push into the growing internet of Things (IoT) market.
Under the deal, Qualcomm Global Trading, an indirect wholly-owned subsidiary of Qualcomm, will pay £9.00 per share in cash for Cambridge-headquartered CSR.
The acquisition complements Qualcomm’s current offerings by adding products, channels, and customers in the growing areas of Internet of Everything (IoE) and automotive infotainment, as the company is striving to expand beyond the smartphone market.
“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,” Qualcomm CEO Steve Mollenkopf said.
“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.”
The deal, which is subject to regulatory and shareholder approval, is expected to close by the end of the summer of 2015.
CSR currently has 2,130 employees in 11 countries around the world, focusing on the development of platforms including automotive infotainment, voice and music, document imaging, Bluetooth Smart, and indoor location.
The Bluetooth specialist reported revenue of $960.7 million for its 52 week financial period ended December 27, 2013, according to the announcement posted by Qualcomm.
CSR was established in 1999 by an engineering and marketing team that previously worked at Cambridge Consultants Limited, a technology and consulting firm based in Cambridge, UK.