U.K.’s Imagination Technologies Intensifies Bid for MIPS with $100M Offer
In a strategic move to outpace competition, Imagination Technologies, a leading U.K.-based microprocessor firm, has escalated its acquisition offer for MIPS Technologies to $100 million in cash. This revised bid targets MIPS’ operating business and select patents, marking a significant increase from its previous $80 million proposal earlier in December 2022.
The Bidding War Heats Up
The decision follows a rival $90 million offer from semiconductor giant CEVA, which prompted Imagination to counter with this higher bid. According to Reuters, CEVA’s latest move set the stage for this intensified competition.
Key Details of the Revised Agreement
- Acquisition Scope: Includes MIPS’ operating business, specific patents, and licensing rights to remaining patents.
- Funding: Financed through existing cash reserves and a pre-arranged acquisition facility.
- Financial Snapshot:
- MIPS generated $60 million in revenue (12 months ending June 30, 2022) but reported a $9 million pre-tax loss.
- Gross assets (excluding cash/short-term investments) stood at $20 million as of September 30, 2022.
Timeline and Next Steps
Imagination anticipates closing the deal by Q1 2023, pending shareholder approval and other regulatory conditions. This bidding war has already driven the acquisition price up from Imagination’s initial $60 million offer in November 2022, as reported by the Financial Times.
Why This Matters
The outcome could reshape the semiconductor IP landscape, with Imagination positioning itself to strengthen its portfolio in processor design. Industry watchers are keen to see if CEVA will respond with another counteroffer, further escalating this high-stakes negotiation.
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