Samsung Electronics has acquired UK-based semiconductor design company Cambridge Silicon Radio’s (CSR) handset connectivity and location technology for $310m in cash.
The deal will provide the Korean company an edge in WiFi and Bluetooth connectivity technology in which CSR is one of the pioneers.
Under the deal, Samsung will acquire 21 US chip patents from CSR and will have a royalty-free licence of all CSR’s patents that are used in handset connectivity and location services.
The Korean company, which will add CSR’s 310 employees in its component division, expects that the deal will boost its mobile application processor division.
Samsung, currently focusing on strengthening its components business, will also invest $34.4m to buy new ordinary shares in CSR.
For the year ended 30 December 2011, the underlying operating costs associated with the handset operations to be transferred to Samsung were $46.6m.
CSR CEO Joep van Beurden said this transaction will accelerate the company’s transformation into a higher gross margin platform company operating in attractive growth markets where we have a leading market position.
"As a result, we will be a more competitive, more differentiated and more profitable business," he added.
"I believe that under Samsung’s ownership the handset operations will be in a better position to prosper in the global handset market."
CSR said it would return up to $285m to shareholders after the transaction which is expected to close in the fourth quarter of 2012.
CSR will retain its existing handset connectivity and location products and the associated revenue, together with rights to use future connectivity and location technology, such as CSR9800, in areas other than handsets and mobile devices.
CSR intends to discontinue investment in its handset connectivity and handset location technology, other than its indoors location platform and focus around its five platform growth areas, which include voice & music, automotive infotainment, indoors location, imaging and bluetooth smart markets.
