Qualcomm buying CSR in $2.5 billion deal

AP News
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Posted: Oct 15, 2014 7:37 AM

SAN DIEGO (AP) — Qualcomm is buying British chip maker CSR in a deal worth approximately $2.5 billion as it pushes aggressively into technology that connects devices over the Internet.

CSR concentrates on the auto, consumer, and voice and music segments. It has 2,130 employees in 11 countries. The company's fiscal 2013 revenue totaled $960.7 million.

That would give Qualcomm a broader entry into a technology that seems suddenly to be everywhere. Consumers are clamoring for technology that allows them to use smartphones to control televisions, air conditioners and light switches when they're away from home. That interconnectedness is moving rapidly into automobiles as well for mapping, communication and entertainment while behind the wheel.

CSR's knowhow in Bluetooth technology and other areas will improve Qualcomm's ability to provide more connectivity, "including business areas such as portable audio, automotive and wearable devices," said Qualcomm CEO Steve Mollenkopf. "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."

Qualcomm said Wednesday that it will pay 9 pounds per CSR share.

Qualcomm Inc., one of the biggest makers of chips used in mobile devices, expects the deal to add to its adjusted earnings per share in fiscal 2016.

The board of CSR Plc. unanimously approved the buyout, but it still requires the approval of CSR shareholders.

The deal is expected to close by the end of the summer of 2015.

Shares of Qualcomm, based in San Diego, rose slightly before the opening bell Wednesday.