Cambridge-based computer CSR chip maker on Monday announced a $ 679 m deal to buy Zoran, Group U.S. imaging technology.
All share merger that will see CSR hold 65% of the combined company, opens the door for CSR add image processing and video to its Wi-fi, bluetooth and GPS products, such as location-aware digital cameras. The merged company's customers will include Sony and Samsung.
Kevin van Beurden, the Executive Director of CSR, which will lead up to the Group combined said on Monday: "the combined entity will be able to be very relevant for camera manufacturers. The same applies to digital television, in cars, gaming and handsets.
"You will definitely see combinations of imaging, video technology and connectivity in one product," he said. "This is an exciting transaction on both strategic and financial plan."
Shares in CSR was down 8% at 399 p 1 PM on Monday, as investors expected to Zoran investors well can sell shares in the Group combined. Its stock has risen 34% in the last three months.
Zoran, which is listed on Nasdaq, had $ 260 m of cash on its balance sheet. CSR said that it would return up to 240 m $ to shareholders through a share repurchase program. Shareholders in Zoran receives 185 CSR shares for each share, Zoran, suggest a 40% premium to the closing price on Friday Zorans.
CSR, if competitors include Broadcom and Qualcomm, have lost ground in expanding the demand for internet-mobile phones enabled. Announces better-than-expected full-year results earlier this month said Van Beurden company aims to increase its share in the smartphone market in 2012.
The company, as also supples Wi-Fi chips to automobilfabrikanternes including Audi, Ford and Toyota, so its full-year revenues rise 33% last year, with operating profit tripling to $ 79 m.
Dr. Levy Gerzberg, Co-founder and chief executive of Zoran, accedes to the CSR Board as non-Executive Director in conjunction with another, yet be named, Zoran Executive.
The deal is expected to be completed in the second quarter of this year, subject to shareholder and regulatory approval.
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