Qualcomm to Acquire SiRF Chipmaker CSR

Qualcomm, Inc., has agreed to buy British CSR for $2.5 billion, to enhance its automotive infotainment and Internet of Things (IoT) offerings. CSR is known to the GPS/GNSS industry as the maker of the SiRFstar series of chips, which are used in many consumer devices. Qualcomm is a leading maker of chips used in smartphones.

According to Qualcomm, the acquisition complements the company’s offerings by adding products, channels, and customers in the important growth categories of Internet of Everything (IoE) and automotive infotainment. “This opportunity is aligned with Qualcomm’s established strategic priorities in these rapidly growing business areas,” according to a Qualcomm statement. The transaction is expected to close by the end of the summer of 2015.

Once the transaction is complete, the two major U.S. wireless/mobile-chip design/manufacturers will have GPS/GNSS technology firmly embedded within their organizations. In July 2007, Broadcom acquired Global Locate. More recently, CSR acquired SiRF Technology in June 2009, and now CSR has in turn been acquired by Qualcomm. Throughout 2008, Broadcom and SiRF were locked in a patent battle that Broadcom eventually won, precipitating a decline in SiRF’s one-time dominance and sending it into eventual disappearance/acquisition by CSR. The two companies are again aligned as opponents as part of the rival camps, Qualcomm and Broadcom, whose competition is fully as intense as the former Global Locate (then Broadcom) versus SiRF tussle.

“The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart, and audio processing will strengthen Qualcomm’s position in providing critical solutions that drive the rapid growth of the Internet of Everything, including business areas such as portable audio, automotive and wearable devices,” said Steve Mollenkopf, chief executive officer of Qualcomm Incorporated. “Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth. We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK.”

The full announcement, issued in accordance with Rule 2.7 of the UK Takeover Code, can be found on Qualcomm’s website at www.qualcomm.com/2.7.pdf.