Oleg Zabluda's blog
Monday, September 25, 2017
 
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Canyon Bridge has announced that they’re buying the struggling GPU firm [Imagination Technologies] for 550 million GBP. Meanwhile, as an annex to the deal, Imagination’s MIPS CPU division, which was separately on the market, is being sold to Tallwood Venture Capital for 65 million USD. [...] 41% premium over Imagination’s current 129 pence share price. [...] still well below the roughly 280 pence share price Imagination was trading at before the initial Apple GPU news broke.
[...]
challenge is likely to be getting the deal approved by regulatory authorities; Canyon Bridge has close ties to the Chinese government, and it was on these grounds last week that their acquisition of Lattice Semiconductor was blocked by the US government. In this case the principle authority impacting the deal will be UK authorities.
[...]
Meanwhile, as a condition of the Canyon Bridge acquisition, Imagination has also finalized their plans for selling off their MIPS business. [...] to Tallwood Venture Capital of California for $65 million. As Imagination initially acquired MIPS for $100M in 2012, this means that the value of the business unit has dropped $35M/35% over the past 5 years.
[...]
Politically, selling off the MIPS business also removes a potential US hurdle to the acquisition, as while Imagination was a UK company, the MIPS business operated outside of the US. By selling off MIPS to a US group, the deal is now primarily about Imagination’s GPU business in the UK, which would help Canyon Bridge avoid having another deal blocked by the US government.
[...]
Apple represented a full half of Imagination’s revenue in the 2015/2016 period,
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https://www.anandtech.com/show/11867/imagination-technologies-to-be-acquired-by-canyon-bridge-for-550m
https://www.anandtech.com/show/11867/imagination-technologies-to-be-acquired-by-canyon-bridge-for-550m

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