Regent Logo

Mergers and Acquistions News

Categories: Software

June 17th 2011, 11:04AM

An acquisition deal between British chipmaking firm CSR and US company Zoran Corp has been completed for a reduced price, following a drop in the trading performance of the latter group.

The $484 million (£300.6 million) deal was confirmed this week, after the initial $679 sale was announced in February.

Figures were changed after Zoran was hit by a period of disruption in the aftermath of the Japan earthquake, and a decision by Cisco systems to exit its Flip digital video camera product line, Reuters reported.

The deal will now see Zoran shareholders get $6.26 in cash and 0.589 CSR shares in the form of US depository shares for each of the shares they own.

CSR confirmed that the cash consideration of $313 million would be met from the combined group's existing cash resources, but that it would no longer proceed with the share buyback programme announced in February.

Despite this, both companies said they were still convinced of the benefits of the deal.

Back in February Joep van Beurden, chief executive officer of CSR, said: "This is an exciting transaction on both a strategic and financial level. Zoran's market leading imaging and video capabilities, combined with our own connectivity and location capabilities, make this a great opportunity for us."
 ADNFCR-1833-ID-800582629-ADNFCR

 

Related News