Imagination Buys MIPS Operations After Patent Sale to ARM
Imagination Technologies Group Plc (IMG), a U.K. maker of chip technology for phones and tablets, agreed to acquire the operating business of MIPS Technologies Inc. (MIPS) to bolster its roster of semiconductor designs and licenses.
Imagination will pay $60 million in cash for the business, which also includes patents and license rights to the MIPS patent portfolio, the Kings Langley, England-based company said in a statement today.
“We have been working closely with MIPS for several years now and have a number of mutual customers and partners,” Imagination Chief Executive Officer Hossein Yassaie said in the statement. “I believe that this transaction will be welcomed by both companies’ customers and the electronics industry.”
ARM Holdings Plc said today that it’s a leading member of a group that has agreed to pay MIPS $350 million for 580 patents and patent applications for chip designs and related technology. MIPS, based in Sunnyvale, California, was said to have hired Goldman Sachs Group Inc. (GS) to find a buyer for its business in April, people with knowledge of the decision said at the time.
Imagination rose 0.2 percent to 465.90 pence at 10:13 a.m. in London trading, paring the decline to 15 percent this year. Cambridge, England-based ARM was the biggest gainer on the FTSE 100 index after announcing the rights deal, rising as much as 5.8 percent.
ARM also rose after people familiar with strategy at Apple Inc. said the maker of the iPhone may replace Intel Corp. (INTC) chips in its personal computers.
Jefferies Group Inc. (JEF) acted as the financial adviser to Imagination, the bank said in a separate statement.
To contact the reporter on this story: Amy Thomson in London at email@example.com