Qualcomm (QCOM) Buys UK Chipmaker in $2.5B Deal

The deal is expected to close in 2015

By William White, InvestorPlace Writer Oct 15, 2014, 12:58 pm EDT October 15, 2014

Qualcomm (QCOM) has agreed to buy CSR, a UK-based chipmaker, for $2.5 billion.

Qualcomm has agreed to pay 900 pence a share for CSR. This is a cash offer that is almost a 57% premium of the company’s stock price as of August 27, which is when it rejected an offer made by Microchip Technology (MCHP). The deal is expected to close in 2015, reports The Wall Street Journal.

The deal is expected to benefit both companies due to their different offers in connected fields. Qualcomm has a focus on smartphones and SIM cards while CSR works on chips that go into devices that can connect to smartphones. CSR CEO Joep Van Beurden said that all everything will connect to smartphones in the future, WSJ notes.

CSR chips can be found in a variety of products used with smartphones. This includes wireless speakers, Apple’s (AAPL) Beats headphones and more. The company also has a strong focus on Bluetooth connectivity, reports Reuters.

Subscriber Sign in