CSR in £417m deal for Zoran

British chipmaker CSR said it had agreed to buy US group Zoran Corporation to add imaging and video to its wi-fi, bluetooth and location technology offer.

Under the terms of the agreement, Zoran shareholders will receive 1.85 shares in CSR in the form of American Depository shares for each Zoran share, valuing Zoran at about £417m.

The deal amounts to a 39.9 per cent premium to Zoran's closing share price on Friday, CSR said in a statement.

CSR also said it would return up to £147M to shareholders in a share buyback.