Samsung to drop $310 million into CSR's handset tech
The semiconductor company says that Samsung has also agreed to invest $34.4 million for a 4.9 percent equity stake in CSR.
Samsung plans to acquire CSR's handset connectivity and location development operations and technology, the companies announced today.
Under the terms of the deal, Samsung will hand over $310 million to the semiconductor company to take control over its "Handset Operations." In addition, Samsung will take on all 310 CSR employees operating in those divisions.
CSR says that Samsung will also invest $34.4 million into its operation in return for a 4.9 percent equity stake.
"I believe that under Samsung's ownership the handset operations will be in a better position to prosper in the global handset market," CSR CEO Joep van Beurden said today in a statement. "I would like to thank all our colleagues who will be transferring to Samsung for their outstanding service to CSR over many years."
Samsung hasn't said exactly what it has planned for CSR's technology, which is designed for mobile products, but the company's president of System LSI Business, Device Solutions, Stephen Woo, told Reuters today that the move should "strengthen its application processor platform."
Whenever companies acquire technology in the mobile space nowadays, questions about patent litigation must come up. Samsung is caught up in a heated patent battle against Apple over claims that it violates intellectual property the iPhone maker holds. In addition, Samsung argues that Apple violates its own patents. Whether that litigation, and the associated patents Samsung acquired in this deal, played a role in the decision to move forward is unknown.
According to CSR, Samsung will receive 21 U.S. patents in the deal.
But before that can happen, Samsung and CSR will need to gain regulatory approval. According to CSR, the deal should be completed during the fourth quarter of 2012.