Qualcomm snaps up British Internet of Things chipmaker CSR

Shareholders accepted a buyout price of $2.5 billion, dashing the acquisition hopes of competitor Microchip Technology.

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Qualcomm has acquired Internet of Things (IoT) chip maker CSR for approximately £1.6 billion ($2.5bn) as the company seeks to exploit the growing market for Web-connected appliances.

Announced on Tuesday, the US chip maker said CSR's assets will complement Qualcomm's portfolio by adding products, channels and customers in the IoT sphere and automotive infotainment industry. The chip maker says these areas have become "strategic priorities" as both industries are growing at a rapid pace.

CSR's shareholders accepted a cash offer of £9.00 per share following unanimous recommendation from the UK-based company's executive board. At the time of writing, the company's share value has risen 30 percent, surging to 859 pence a share.

In August, CSR rejected a takeover bid from Microchip Technology. The undisclosed offer was not considered enough. Cambridge, UK-based Microchip Technology is a Bluetooth technology specialist which develops products used in smartphones and cars.

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Steve Mollenkopf, chief executive officer of Qualcomm said in prepared remarks:

"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 regulatory approval by the US and United Kingdom. The deal is expected to formally close by the end of summer 2015.

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