December 17, 2012 -- Imagination Technologies Group plc (LSE:IMG, "Imagination"), a leading multimedia, communications and embedded processor technology company, has signed a revised agreement to acquire the operating business and certain patent properties, as well as license rights to all of the remaining patent properties, of MIPS Technologies, Inc. (Nasdaq: MIPS, "MIPS") for a cash consideration of US$100 million, to be financed from existing cash resources and a new acquisition facility that has already been set up. MIPS is a leading provider of CPU (central processing unit) processor architectures and cores.
The revised offer has been made in response to an increased offer made to MIPS by CEVA, Inc., to acquire the same assets.
All other material terms and conditions of the acquisition remain as stated in Imagination’s announcement on 6 November 2012.
In the 12 months to 30 June 2012 the MIPS processor licensing business generated c.US$60 million in revenue and a loss before tax of c.US$9 million. MIPS' licensing business had gross assets* of c.US$20 million at 30 September 2012.
*Excluding cash and short term investments
If the conditions to which the acquisition of MIPS is subject (including the approval of MIPS' shareholders) are satisfied, then the transaction is still expected to complete during Q1 CY2013.
Imagination - a global leader in multimedia and communication technologies - creates and licenses market-leading processor solutions for graphics, video, display, embedded processing, multi-standard communications and connectivity, and cross-platform V.VoIP & VoLTE. These silicon and software intellectual property solutions for systems-on-chip (SoC) are complemented by an extensive portfolio of software drivers, developer tools and extensive market and technology-focused ecosystems. Target markets include mobile phone, handheld multimedia devices, connected home consumer, tablets/mobile computing, in-car electronics, telecoms, health, smart energy and connected sensors and controllers. Imagination's licensees include many of the world's leading semiconductor, network operator and electronics OEM/ODM companies. Corporate headquarters are located in the United Kingdom, with sales and R&D offices worldwide. See: [www.imgtec.com]