In a bid to strengthen its position in the Internet of Things (IoT) and connected vehicles Qualcomm buys UK-based chip maker CSR, an acquisition worth $2.5 billion in cash.
Formerly known as Cambridge Silicon Radio, CSR is a connectivity specialist and Bluetooth pioneer. Its chips are found in products ranging from smartphones, portable audio speakers, Beats headphones, connected appliances and in-auto entertainment systems, and currently sees growth thanks to the IoT boom.
IDC expects the IoT market to grow from $19 trillion in 2013 to $7.1tr by 2020.
“The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart and audio processing will strengthen Qualcomm’s position in providing critical solutions that drive the rapid growth of the Internet of Everything,” Qualcomm says. “Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth."
Analog and digital chip maker Microchip Technology was previously set to buy CSR, but the two sides failed to agree over the asking price before the deadline imposed by UK regulators-- which is when Qualcomm swooped in with its offer. Analysts suggest there is a chance for alternative buyers-to-be to emerge, even if it is hard to beat what Qualcomm is paying.
If no one else steps forward acquisition should be completed by Q3 2015.
