Date
17 October 2017
After being blocked from buying a US semiconductor firm, a China-backed fund has sealed a deal for a British chip designer. Photo: Bloomberg
After being blocked from buying a US semiconductor firm, a China-backed fund has sealed a deal for a British chip designer. Photo: Bloomberg

China-backed firm to acquire UK-based chip designer

Canyon Bridge Capital Partners, a China-backed investment firm, has reached a deal to acquire UK-based chip designer Imagination Technologies for 550 million pounds (US$742 million). 

Canyon Bridge, whose planned purchase of a US semiconductor firm was scuttled earlier this month, said on Friday that it will buy Imagination Technologies in an all-cash deal, the Wall Street Journal reports.

The shares will be acquired at 182 British pence apiece, representing a 42 percent premium to Imagination’s Friday closing price.

Imagination Technologies, which put itself up for sale in June, has been supplying Apple with graphic-processing units, which power videos and other animations on smartphones and computers.

To appease any concerns that the deal may raise among British authorities, Canyon Bridge said it will maintain Imagination’s UK headquarters and indicated it had no plans to cut jobs or change the management, the Journal reports.

Canyon Bridge’s plan to buy Imagination comes after its deal to acquire Portland, Oregon-based Lattice Semiconductor Corp. was rejected by President Donald Trump.

The companies had appealed to Trump to overrule a negative recommendation by the Committee on Foreign Investment in the US, a multiagency panel that screens foreign takeovers.

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RC

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