Bluetooth maker CSR to buy out GPS major SiRF

11 February 2009

British bluetooth firm CSR Plc, a leading manufacturer of Bluetooth chips and devices, is to buy out US chip firm SiRF Technology Holdings Inc in a $136-million, all-share deal to bolster it in a slowing technology market.

The combined company would probably become one of the top ten 'fabless chip' designers, with nearly a billion dollars in revenue.

Under the agreement, SiRF stockholders will receive 0.741 of a CSR share for each share of SiRF common stock they own, or $2.06 of CSR stock for each SiRF share. That represents a 91 per cent premium over SiRF's stock price on 9 February.

When the transaction closes, SiRF stockholders will own approximately 27 per cent of the merged companies and CSR shareholders are expected to own approximately 73 per cent. The boards of both companies unanimously approved the deal, which is expected to close in the second quarter of 2009.

Customers of the combined company include four of the top five mobile handset manufacturers, and the top five personal navigation device makers. The news comes less than a month after a U.S. trade panel ruled that SiRF infringed on three of Broadcom's GPS patents and barred SiRF imports of the products.

"Our ability to offer customers both leading edge location and connectivity technologies will be a key competitive advantage," said Dado Banatao, chairman of Sirf, in a release.