MIPS acquired by Imagination Tech

MIPS said it has entered into separate agreements to sell its business in two pieces with net proceeds of Rs.397.28 ($7.31) per share in cash.

 • MIPS said it will sell 498 patents of its total 580 patent assets to Bridge Crossing, an acquisition vehicle of Allied Security Trust (AST), for Rs.1,902.17 crore ($350 million).
 • The company will sell its operating business and the remaining 82 patents to Imagination Technologies for Rs.326.09 crore ($60 million).

MIPS will sell 498 patents to a consortium of technology companies organised by patent holding company Allied Security Trust and led by ARM. The consortium will pay Rs.1,902.17 crore ($350 million) in cash to acquire rights to the portfolio, of which ARM will contribute Rs.910.33 crore ($167.5 million).

Imagination, through this buyout, would retain 82 patent properties "that are directly relevant and key to the MIPS architecture," and will also be granted a royalty-free, perpetual licence under all of the patent properties sold to Bridge Crossing.

"The total value of the transaction represents a 40 per cent premium to the closing price on April 11, 2012, the day prior to the first public rumour of a potential sale of MIPS," said MIPS in a statement.

The acquisition will further strengthen Imagination's position and opportunities in mobile, TV/set-top-box, consumer, and other embedded markets, as well as increase its penetration into networking, infrastructure and other markets where MIPS has enjoyed significant success.

"I am confident the acquisition will accelerate our growth in the substantial CPU IP market across many segments," said Hossein Yassaie, CEO, Imagination Technologies. "The MIPS architecture is widely respected, and is complementary to Imagination's existing CPU capabilities. I believe that this proposed transaction will be welcomed by both companies' customers and by the electronics industry at large."

"The industry needs semiconductor IP companies with a breadth of respected processor architectures for all SoC processing requirements. This acquisition is a strong and welcome step in addressing such needs," added Sandeep Vij, president and chief executive officer, MIPS.

Both transactions are subject to customary closing conditions, including the approval of MIPS' shareholders.