Patents and handset connectivity and location technology gained by Samsung in £198m acquisition
Samsung is set to buy the mobile development business of British chipmaker CSR in a $310 million (£198m) deal.
The Korean manufacturer will also pay $34.4 million (£22m) in normal shares, securing it a 4.9 percent stake in CSR, which will now focus on making chips for other electronics such as televisions and audio equipment.
Samsung will acquire 21 of CSR’s US patents as part of the deal as well as a perpetual, royalty-free license of CSR’s other patents related to its handset connectivity and location products.
The Korean manufacturer will gain control of the development resources for all of CSR’s handset connectivity technology as well as a significant proportion of its handset location technology development resources. Samsung will also take on 310 CSR employees as part of the takeover, which is subject to obtaining certain Korean anti-trust and other regulatory clearances.
“The value achieved for our handset operations reflects the market leadership of our handset connectivity and location technology created through the talent, expertise and dedication of our people,” said Joep Van Beurden, CEO of CSR. “This transaction unlocks material value for our shareholders, who will also benefit from a significant return of capital.”
“I believe that under Samsung’s ownership the handset operations will be in a better position to prosper in the global handset market,” he added. “I would like to thank all our colleagues who will be transferring to Samsung for their outstanding service to CSR over many years.”
It is believed that Samsung will use the technology gained in the takeover to assist in its battle for smartphone supremacy with arch-rival Apple. The two are also engaged in a worldwide patent war which has seen numerous allegations of patent infringement in courts around the globe.
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