Qualcomm Inc. is set to acquire CSR, a chip making company based in Cambridge, England for a whopping $2.5 billion. The acquisition will help the company to further expand its business in the field of audio, automotive and wearable devices.
CSR’s business is mainly based on Bluetooth chips, navigation systems, automotive systems and the “Internet of everything” also known as Internet of things which aims at smart computing and connectivity to a range of devices. The company generated an annual revenue of $96.7 million in the latest fiscal year and has about 2,130 employees in 11 countries. Qualcomm CEO Steve Mollenkopf stated that the deal “will unlock new opportunities for growth”.
Both the companies share a common interest in the development of automotive and the internet of things that aims at connecting daily objects like curtains and lights to the internet. The deal is expected to be completed by the summer of 2015 was passed by the board after being offered £9.0 (approx. $14) per share.
Earlier, Qualcomm had helped to form AllSeen Alliance, an internet of things standards group last year and the Bluetooth technology from CSR will help the company compete with “CSRmesh” Bluetooth technology managed by Thread Group, another internet of things organization started by Google, Samsung and other companies, according to Patrick Moorhead, founder and president of Moor Insights & Strategy.
Mollenkopf added that the company was looking forward to unlock new technologies with CSR which has a strong track record in the field of connectivity technologies. CSR was also expecting to be acquired by a market leader like Qualcomm and had declined an acquisition offer from Microchip Technology. Last July, Qualcomm had acquired a startup Wilocity that develops chips based on WiGig for faster connectivity between devices.
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