Deal will provide Samsung with intellectual property and 310 staff to help to fill gaps in technology portfolio
Samsung has agreed to buy the handset research and development operations of Cambraidge based firm Cambridge Silicon Radio (CSR) for £198 million.
The deal gives Samsung access to technology licences in areas including connectivity and location technology such as Bluetooth, Wi-Fi and GPS.
The entirety of CSR handset intellectual property portfolio will be licenccsed to Samsung under the deal, with an addional 21 US patents transferred to the Korean company.
The deal will also see 310 staff transfer to Samsung.
As part of the deal, Samsung has also invested an additional £22 million for a 4.9 per cent stake in CSR.
CSR said that its handset devision was too small to compete in the global handset market, but would provide Samsung with technology in areas where its portfolio needed strengthening.
CSR CEO Joep Van Buerden (pictured) said: “This transaction will accelerate our transformation into a higher gross margin platform company operating in attractive growth markets where we have a leading market position. As a result, we will be a more competitive, more differentiated and more profitable business.
“The value achieved for our handset operations reflects the market leadership of our handset connectivity and location technology created through the talent, expertise and dedication of our people. This transaction unlocks material value for our shareholders, who will also benefit from a significant return of capital.
“I believe that under Samsung’s ownership the handset operations will be in a better position to prosper in the global handset market. I would like to thank all our colleagues who will be transferring to Samsung for their outstanding service to CSR over many years.”
The deal is expected to close in Q4 this year.