Qualcomm Pounces On U.K. Chip Maker

LONDON-- Qualcomm Inc. has pounced on U.K. connectivity chip specialist CSR PLC in a GBP1.56 billion ($2.5 billion) takeover as the U.S. wireless-technology group seeds to expand its capabilities in the fast-growing area of Internet-connected devices.

Qualcomm said CSR's board has accepted a cash offer of 900 pence a share, equivalent to a near 57% premium to the U.K. company's share price August 27. CSR rejected a takeover offer from Microchip Technology Inc. that month.

"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, we believe that the offer from Qualcomm provides CSR shareholders with an immediate and certain value which is highly attractive," CSR chairman Ron Mackintosh said.

CSR, formerly known as Cambridge Silicon Radio, has been hurt in recent years by exposure to declining areas such as digital cameras but--through a specialization in Bluetooth technology used to connect devices with each other--the company has hoped to benefit from growth in the so-called "Internet of Things," a term used to describe connecting household devices to the Internet.

"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," said Qualcomm CEO Steven M. Mollenkopf.

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