Imagination Tech learns of rival for MIPS acquisition

Imagination Technologies has said that it has become aware that MIPS Technologies, a US computing company which Imagination is set to acquire, has received an unsolicited proposal from CEVA to acquire all of its outstanding shares.

As previously announced, Imagination is paying $60m to get its hands on the US firm and 82 of its patents, and in a separate deal a consortium of industry players, will acquire a large chunk of the MIPS patent portfolio, including 580 patents and patent applications covering microprocessor design, system-on-chip design and other related technology fields.

While gaining control of 82 patents that are directly relevant to the MIPS architecture, Imagination will also have comprehensive licence rights to all of the remaining 498 MIPS' patent properties which are being sold to the consortium, Bridge Crossing LLC.

The approach by CEVA, the world's leading licensor of silicon intellectual property, follows the consummation of this proposed patent sale transaction with Bridge Crossing LLC.

Imagination was keen to stress that, to its knowledge, the board of MIPS is continuing to recommend its shareholders agree to the merger with Imagination.

The group said it is monitoring the situation and will give an update when it knows more.

Imagination's share price dropped 0.84% to 437.10p in opening trading.

NR