According to latest reports, US chipmaker Qualcomm Inc. has plans to acquire one of its UK counterparts CSR Plc for a whopping $2.5 billion. Qualcomm is hoping that its offer of $2.5 billion will turn out to be the knock-out punch and allow it to win the bid to get the ownership of the UK firm.
On Wednesday, CSR announced that Qualcomm, which is currently the most trusted and popular mobile chipmaker in the world, is ready to pay 900 pence per share in cash for them (CSR), which represents 56.5% premium on share price before the offer period begins in August.
Reports suggest that Microchip Technology, which is also a US chipmaker, approached CSR with an offer, but the British company rejected the undisclosed offer saying that it is not sufficient. However, both companies are still in talks and trying to finalise a deal. We will soon get to know CSR’s decision as Wednesday is the final deadline to close the deal.
Steven M. Mollenkopf, the CEO of Qualcomm, has told that acquiring CSR will allow his company in diversifying in markets for short-range Bluetooth chips, audio processing, wearable devices and automative controls.
According to Mollenkopf, combining the highly advanced connectivity technologies offered by CSR with successful Qualcomm technologies will open fresh avenues for the company and allow it to grow further.
Qualcomm in spite of being the leading smartphone chip maker in the world currently keeps on looking for ways to reaching new heights; right now it is focusing on moving beyond the mobile phone market and making it to the emerging sectors like products categorized as “The Internet of Things”.