Wireless technology business CSR plc - previously known as Cambridge Silicon Radio - has announced a deal to transfer its handset connectivity and location operations to Samsung Electronics for $310 million. In addition, Samsung is investing $34.4 million for a 4.9% investment in CSR. Over 300 staff will be transferred from CSR plc to Samsung as part of the deal.
Samsung will be able to use CSR’s patents in its mobile phone business, while CSR says the agreement will help focus its semiconductor business, accelerate its platform strategy and increase profitability.
Joep van Beurden, CEO of CSR, 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.”