Imagination Technologies revises agreement for MIPS

Imagination Technologies Group has signed a revised agreement to acquire a 100 million dollar stake in MIPS Technologies.

The leading multimedia, communications and embedded processor technology company has purchased the operating business, certain patent properties and license rights to the rest of the patent properties of MIPS.

The deal for MIPS -- a provider of central processing unit processor architectures and cores -- will be financed from existing cash resources and a new acquisition facility.

Imagination revised its offer after CEVA put in a higher bid to acquire the same assets.

The MIPS processor licensing business generated $60m in revenue and a loss before tax of $9m in the 12 months to June 30th, 2012. The licensing business of MIPS had gross assets of $20m as of the last September 30th.

Imagination, which has a market capitalisation of £1,080.25m, creates and licenses processor solutions for graphics, video, display, embedded processing, multi-standard communications and connectivity, and cross-platform V.VoIP and VoLTE.

Markets segments for the FTSE 250 company include mobile phones, handheld multimedia devices, connected home consumer, tablets and mobile computing, in-car electronics, telecoms, health, smart energy and connected sensors and controllers.

Imagination's shares were down 0.22% to 408.30p at 8:55 Monday.

RD