CSR share price jumps after Qualcomm makes £1.6bn offer

 
Lynsey Barber
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Qualcomm has offered $1.6bn for CSR (Source: Reuters)

Qualcomm is buying British tech company CSR after seeing off US rival Microchip.

The world’s largest chipmaker has offered CSR shareholders 900 pence per share, valuing the Cambridge-based FTSE 250 firm at £1.6bn.

CSR shares jumped more than 33 per cent this morning following its announcement that it had reached an agreement with Qualcomm.

With the offer, Qualcomm sees off rival Microchip which had previously made a bid rebuffed by CSR. The US firm still has until 5pm today to announce a firm intention for a deal.

Microchip’s estimated $2.7bn offer, believed to be a “tax inversion” deal, is unlikely to be upped in the light of proposed new tax rules in the US and Ireland. The changes to tax arrangements make inversions less favourable and have already placed question marks over a similar deal between Abbvie and Shire.

Qualcomm's cash offer has been unanimously recommended by CSR’s board of directors and Qualcomm expects to close the deal by the end of the summer in 2015, subject to approval.

Qualcomm chief executive Steve Mollenkopf said: "The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart1 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.

"Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth. We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK.”

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