Chinese Tsinghua Unigroup has signed an agreement to acquire the wireless communications chip maker Spreadtrum for about $1.78bn.
As part of the deal, the Tsinghua Unigroup, a unit of the state-owned Tsinghua Holdings, will buy all the outstanding ordinary shares of Spreadtrum by paying $31 per American Depositary Share.
The transaction has been approved by the Company’s Board of Directors and is subjected to approval by the shareholders of Spreadtrum, and other regulatory bodies.
Tsinghua Unigroup chairman and chief executive officer Zhao Weiguo said: "We believe Spreadtrum and Tsinghua Unigroup will supplement each other and create enormous synergies in China and abroad."
Spreadtrum chairman and CEO Leo Liyou Li said: "The acquisition by Tsinghua will provide investors with significant returns, and position the Spreadtrum business for continued growth."
Spreadtrum is a semiconductor company that manufactures mobile chipset platforms for smartphones, feature phones and other electronics products that support 2G, 3G and 4G wireless communications standards and has reported annual revenue of about $720m in 2012.
The semiconductor company’s customers include global and China-based manufacturers that develop mobile products for consumers in China and markets across the globe.
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