Sophia Antipolis: Transaction between CSR and Samsung Electronics

Cambridge Silicon Radio announced an agreement with Samsung for the transfer of CSR’s development operations.

 

Cambridge Silicon Radio (CSR), a leading global provider of personal wireless technology which has an office in Sophia Antipolis, has announced a transaction with Samsung Electronics and an associated return of capital.

 

The transaction immediately:

-          increases CSR’s focus on its five high growth markets of Voice & Music, Automotive Infotainment, Indoors Location, Imaging and Bluetooth Smart;

-          accelerates its higher margin platform strategy;

-          improves CSR’s overall market position.

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CSR welcomes Samsung as a supportive investor with confidence in CSR’s strategy and future potential. The transaction is expected to complete during Q4 2012

 

CSR has entered into a conditional binding agreement with Samsung for the transfer of CSR’s development operations in handset connectivity and location, including 310 people, together with certain rights over CSR’s technology in these areas for a consideration of US$310 million. None of the revenues associated with CSR’s existing handset products will be transferred.

 

The transaction:

-          Transfers to Samsung substantially all of the resources devoted to the development of CSR’s handset connectivity technology and a significant proportion of the resources dedicated to the development of handset location technology, including 310 employees together with certain associated fixed assets, but excluding CSR’s existing handset connectivity and handset location products;

-          Grants Samsung a world-wide, perpetual, royalty-free, non-exclusive license of the Company’s intellectual property rights used in its handset connectivity and location products; and

-          Transfers to Samsung 21 U.S. patents, including their respective international counterparts, which will be licensed back to CSR in perpetuity on a royalty-free basis.

 

Following the transaction, CSR intends to:

-          Focus on the five growth platforms of Voice & Music, Automotive Infotainment, Indoors Location, Imaging and Bluetooth Smart markets;

-          Discontinue investment in its handset connectivity and handset location technology, other than its leading edge indoors location platform;

-          Reorganize its roadmap and future investment plans around its five platform growth areas, which will include some ongoing net reinvestment in those areas of approximately US$15 million to US$20 million;

-          Continue to sell and support its existing connectivity products to the handset market.

 

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.”

“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.”

En savoir plus : www.csr.com/