July 17, 2012 -- Samsung Electronics, a world leader in advanced semiconductor solutions, and CSR, a global leader in wireless connectivity and location technologies, today announced a strategic collaborative relationship by aligning their respective business visions, investments and key technologies.
Under the terms of the agreement, Samsung will gain full access to CSR’s mobile connectivity and location technology and transfer certain relevant patents, as well as employ over 300 CSR employees in the selected field for the cash consideration of $310 million. In addition, Samsung will receive perpetual rights to CSR’s intellectual property related to connectivity and location technology such as Bluetooth®, Wi-Fi® and GPS reinforcing Samsung’s leadership in mobile component solutions.
The deal will enable both companies to better align their current development efforts and future product roadmaps, while accelerating their time-to-market for rapidly evolving demands within the market.
As part of the relationship, Samsung will make an investment of approximately $34 million in CSR’s ordinary shares upon closing.
"This strategic partnership combines Samsung’s world-class semiconductor technology with CSR’s cutting edge wireless connectivity and location expertise. By leveraging CSR’s R&D capability, Samsung will strengthen its application processor platform and solidify its position as a leading semiconductor solutions provider," said Stephen Woo, president of System LSI Business, Device Solutions, Samsung Electronics. "Samsung’s Exynos processor optimised with these wireless connectivity capabilities will provide our customers with an even broader mobile solution portfolio to expand their business opportunities."
"This transaction will accelerate our transformation into a more competitive platform company operating in attractive growth markets where we have a leading market position.," said Joep van Beurden, CEO of CSR "This cooperation appreciates the global value and competitiveness of CSR achieved through the talent, expertise and dedication of our people. I believe that under Samsung’s System LSI operations the mobile connectivity and location technology will be in a position to prosper in an increasingly competitive global mobile device market."
Upon the completion of the transaction, Samsung plans to organise the resources and assets from CSR as a multi-site R&D centre for connectivity and location products development.
The transaction is expected to be completed by the fourth quarter of this year.