CSR, the company behind the wireless audio technology used in Dr Dre’s Beats headphones, was today set to be sold for £1.56 billion after US tech giant Qualcomm swooped in with a knockout takeover bid.
The 900p-a-share cash offer trumps an earlier bid by American rival, Microchip Technology, whose approach in August was rejected by CSR as too low.
CSR and Microchip had been in talks over a potential deal, with the deadline set for today.
The board of Cambridge-based CSR has given its unanimous backing to Qualcomm’s takeover.
CSR shares leapt by 31%, or 203p, to 861.5p, but that was below Qualcomm’s offer price as analysts reckoned a higher counterbid from another suitor was unlikely. The shares have soared by two thirds since August.
Qualcomm said buying CSR, known for its expertise in wireless technology such as Bluetooth and audio processing, was a good fit as more everyday appliances from cars to fridges become internet-enabled, a phenomenon dubbed the internet of things. The company added it saw “automotive infotainment” as a major growth area.
The acquisition will boost Qualcomm’s profits by 2016 as well as “strengthening our technology presence in Cambridge and the UK”. There was no word on any synergies or cuts.
