Thursday 2 January 2020 4:16 pm

Apple rekindles relationship with Imagination Technologies with new deal

Apple has struck a new licensing deal with a British chipmaker it had previously cut ties with three years ago.

Apple previously used chips that were made by Imagination Technologies, before breaking off the partnership in 2017.

Read more: Apple supplier Imagination Technologies swings to biggest ever loss

Today, Imagination said it had “formed a new multi-year license agreement under which Apple has access to a wider range of Imagination’s intellectual property in exchange for license fees”.

The company did not comment further on the details.

Speaking to the FT, a spokesperson said: “We can’t comment on today’s announcement, but I think it’s one of several things Imagination has to feel good about as we head into 2020.

“We feel resurgent.”

Apple used to use the company’s graphic chips in its iPhones and iPads, however it moved to its own designs in 2017 starting with the iPhone X.

The decision was catastrophic for Imagination Technologies, whose stock plummeted after the announcement.

Read more: Imagination Technologies share price dips as it sells Pure Radio

The Hertfordshire-based company had become overly reliant on Apple, meaning that the end of the partnership severely hurt Imagination’s revenues.

The company was sold to Chinese firm Canyon Bridge Capital Partners in September 2017 for £500m.