Samsung Electronics Co. Ltd. has agreed to pay CSR plc (Cambridge, England) $310 million for its handset connectivity and location operations and the associated technology. Samsung has also agreed to invest an additional $34.4 million to take a 4.9 percent stake in publicly-held CSR.
The deal leaves CSR free to focus on higher margin business and growth areas such as: voice & music, automotive infotainment, indoors location finding, imaging and Bluetooth smart.
CSR, founded as Cambridge Silicon Radio Ltd. in 1998 as a spin off from Cambridge Consultants, plans to return up to $285 million of the Samsung money to shareholders via a tender offer. The deal is expected to close in the fourth quarter of 2012.
CSR has entered into a conditional binding agreement to transfer of CSR's development operations in handset connectivity and location, including 310 people, together with certain rights over CSR's technology in these areas. However, none of the revenues associated with CSR's existing handset products will be transferred.
In addition CSR retains the rights to use future connectivity and location technology, such as CSR9800, in areas other than handsets and mobile devices.
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