U.S. based Qualcomm Inc has agreed to acquire CSR Plc for a deal worth $2.5 billion.
Qualcomm, the No. 1 mobile chipmaker in the world agreed to pay cash of 900 pence per share for CSR, which is a premium of 56.5% on the price per share prior to the offer period starting in August, said CSR on Wednesday.
In August, the United Kingdom-based company rebuffed an offer from Microchip Technology another chipmaker based in the U.S. saying the offer, which was not disclosed, was not enough.
The two remained talking attempting to reach a deal, with a deadline that UK regulators imposed for Wednesday.
There is a possibility other bidders might emerge, said one industry analyst, although the high amount that Qualcomm has agreed to pay would likely prove difficult to beat.
With a price now released to the public, it could push others to possibly show their hand, commented the analyst.
Steven Mollenkopf the CEO at Qualcomm said adding CSR to the fold would allow the company to diversity into short-range, wireless chips for Bluetooth and the audio processing that is used in wearable devices, portable audio and automotive controls,
Qualcomm the dominate chipmaker for chips in smartphones has looked to expand beyond the mobile phone market into new emerging areas like wireless home appliances along with other devices.
This past May, Qualcomm agreed to buy Wilocity, a wireless HDMI connections maker. The connections are used for transmission of video between displays and computers.
It also developed AllJoyn, a platform that is open-source that allows the sharing of information by devices with other devices that are nearby.
Joep van Beurden the CEO at CSR said his company and Qualcomm were a good fit.
CSR, which is Cambridge Silicon Radio, is a specialist in connectivity. The chips it makes are used in products like portable audio speakers, Beats headphones owned by Apple and more.
It was the pioneer in wireless technology for Bluetooth, which is expanding in popularity for use in appliance that are network connected, wireless audio speaker and connected car features for autos.
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