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Mergers and Acquistions News

Categories: Hardware

February 21st 2011, 17:20PM

CSR, a computer chip maker based in the UK, says it will acquire 65 per cent of US digital imaging firm Zoran in a deal valued at $679 million (£418 million).

Zoran shareholders will each receive 1.85 ordinary shares of CSR in the form of American Depositary Shares for each share of Zoran common stock held. CSR has said it will return up to $240 million to shareholders via a buyback programme.

The all-share merger will enable CSR, which makes chips for Bluetooth, GPS, FM, Wi-Fi and audio products, to add imaging and video to its current crop of offerings.

Joep van Beurden, CSR's chief executive, said: "The combined entity is going to be in a position to be very relevant to camera manufacturers. The same is true for digital televisions, in cars, in gaming and in handsets.

"You will absolutely see combinations of imaging, video technology, and connectivity in one product," he said.

But analysts said they were unsure CSR would bolster its smartphone activity, where it has suffered at the hands of savvier competitors.

Lee Simpson, of Jefferies & Co, told Reuters: "CSR had to be more than a pure play connectivity business and this at least gives them some of that aspect."ADNFCR-1833-ID-800418218-ADNFCR

 

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