CSR agrees cut price $484m to buy Zoran
Chipmaker CSR will buy Zoran Corp for a reduced price of $484m (£300m) following a deterioration in the US group’s trading performance, the two firms announced.
Zoran shareholders will now get $6.26 in cash and 0.589 CSR shares in the form of American depositary shares for each Zoran stock they own.
The two firms originally agreed in February an all-share deal worth $679m.
However, they said Zoran had since been hit by disruption due to March’s earthquake in Japan and by Cisco Systems’ decision to exit its Flip digital video camera product line.
The two firms said they remained convinced of the logic and benefits of the deal, which will add imaging and video to CSR’s wi-fi, bluetooth and GPS location technologies.
CSR said the cash consideration of $313m would be met from the combined group’s existing cash resources and it would no longer proceed with a share buyback programme announced in February. Zoran had a cash balance of $251m at 31 March.
Both firms reiterated their latest second-quarter revenue guidance.