Qualcomm Makes $2.5bn Bid for CSR

qualcommMobile chipmaker Qualcomm has made a $2.5bn (£1.56bn) bid for British Bluetooth specialist CSR, in the hopes of acquiring the fast-growing company.

The offer represents a 56.5 per cent premium on the share price before the start of the offer period in August, at 900 pence a share in cash.

CSR has already refused an offer by US firm Microchip Technology on the basis that its offer was insufficient, and while the two companies remained in talks to reach a deal, they have just reached the deadline imposed by regulators with no sign of an agreement.

While alternative bidders may emerge, it is unlikely that any will match Qualcomms bid, which is very high compared to other recent mergers of microchip companies.

Qualcomm, a dominant force in smartphone chip manufacture, has been looking to diversify beyond the smartphone market into emerging technology areas, and CSRs involvement in Internet of Things devices and beacon technology would serve as an excellent launchpad into new markets.

“The addition of CSRs technology leadership in Bluetooth, Bluetooth Smart and audio processing will strengthen Qualcomms 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 Steven Mollenkopf, CEO of Qualcomm. “Combining CSRs 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.”