Chipzilla of the mobile world Qualcomm wants to slurp Brit vendor CSR... for £1.6bn

UK Bluetooth specialist CSR looks set to wed Qualcomm Inc, after the mobile chip giant said it had agreed to buy the company for £1.6bn ($2.5bn).

San Diego-based Qualcomm said that the acquisition would allow it to beef up the firm's Internet of Stuff and car entertainment businesses.

The company's chief Steve Mollenkopf said in a canned statement announcing the planned buyout:

The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart and audio processing will strengthen Qualcomm’s position in providing critical solutions that drive the rapid growth of the Internet of Everything, including business areas such as portable audio, automotive and wearable devices.

Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth.

Qualcomm said it would pay 900 pence a share in cash for Cambridge, England-based CSR, which rejected a takeover bid by customer and partner Microchip Technology in August.

The deal is subject to regulatory and shareholder approval, which means the proposed transaction won't be expected to complete until next summer.

"While the CSR Directors believe that CSR is now strongly positioned to execute its strategy of delivering growth and sustainable returns in the medium and long term," said the British firm's chairman Ron Mackintosh, "we believe that the offer from Qualcomm provides CSR shareholders with an immediate and certain value which is highly attractive."

Shares in CSR - which makes the chips for Apple's Beats headphones - are currently trading at 855.50 pence, up a whopping 30 per cent on the London Stock Exchange.

CSR said the proposed takeover represented a 56.5 per cent premium based on the closing price of 575 pence per share on 27 August, the last business day before the offer was tabled by Qualcomm. ®