Samsung takes CSR division in £220m deal
Korean electronics giant Samsung has acquired a major segment of CSR’s wireless technology business in Cambridge UK to establish a new European flagship operation following a $344.4m (£220m) deal.
The acquisition includes 310 CSR staff in Cambridge and the company confirmed to Business Weekly that the operations and all relevant headcount would remain in the city.Samsung is buying CSR’s development operations in handset connectivity and location, the workforce, plus certain rights over CSR’s technology in these area for $310 million cash.
Samsung will also invest $34.m in return for new ordinary shares in CSR representing 4.9 per cent of the current issued share capital at 223p per share on completion of the deal.
CSR shareholders are also in for a windfall. Once the deal is completed the company intends to return up to $285m to stakeholders.
CEO Joep van Beurden said the deal would accelerate CSR’s transformation into a higher gross margin platform company “operating in growth markets where we have a leading market position.”
He added: “As a result we will be a more competitive, more differentiated and more profitable business.
“I believe that under the ownership of Samsung Electronics Co.Ltd the handset operations will be in a better position to prosper in the global market.”
van Beurden said the deal immediately increased CSR’s focus on its five high growth markets of voice & music, automotive infotainment, indoors location, imaging and Bluetooth Smart.
