Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
  HOME     MENU     SEARCH     NEWSLETTER    
CUSTOMER RELATIONSHIP MANAGEMENT NEWS. UPDATED 8 MINUTES AGO.
You are here: Home / Mobile Tech / Imagination Tech Now Up for Sale
Imagination Tech, Spurned by Apple, Now Up for Sale
Imagination Tech, Spurned by Apple, Now Up for Sale
By Shirley Siluk / CRM Daily Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JUNE
22
2017
After being spurned in April by Apple -- its main customer -- UK-based graphics chipmaker Imagination Technologies put itself up for sale today. Imagination Tech announced that over the past few weeks it has seen interest from a number of potential buyers for its entire organization and it has now launched a formal sale process. The company had already started sales proceedings for two separate parts of the business in May.

Apple had used Imagination's system-on-chip (SoC) technology in its devices for years, and its business had grown to account for around half of the chipmaker's revenues. Following the news in early April that Apple planned to make its own multimedia processors and phase out its use of Imagination's SoCs, the U.K. company's share prices collapsed by nearly 70 percent and have now only recovered some of their value.

Two Divisions Already Up for Offer

Under a dispensation Imagination Technologies received from the UK Takeover Panel, interested buyers will not have to publicly disclose their identities, the company said in a statement today. Additionally, potential bidders, who will be required to sign a confidentiality agreement, should contact the company's financial advisor, Rothschild, the firm added.

Meanwhile, the company's dispute with Apple over changes in their commercial relationship continues. Imagination Technologies announced its formal pursuit of a dispute resolution procedure with Apple on May 4, the same day it revealed its plans to sell its MIPS and Ensigma businesses.

The company is divided into three major divisions: MIPS, which produces low-power CPUs for mobile devices, wearables and Internet of Things devices; Ensigma, which offers technologies for wireless IP connectivity; and PowerVR, its graphics processor (GPU) division.

"Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination's technology, without violating Imagination's patents, intellectual property and confidential information," Imagination said in an April 3 statement after Apple's decision was made public. "This evidence has been requested by Imagination but Apple has declined to provide it."

The company added, "Further, Imagination believes that it would be extremely challenging to design a brand new GPU architecture from basics without infringing its intellectual property rights, accordingly Imagination does not accept Apple's assertions."

Apple Among Potential Buyers?

Established in 1985, Imagination Technologies could now see a variety of potential buyers, including other chipmaking giants such as Intel and Qualcomm. Patrick Moorhead, founder, president and principal analyst at Moor Insights & Strategy, noted in April that Google, Microsoft, or Samsung might also make a play for acquisition. A report in Reuters today noted that "Apple itself could be interested."

In addition to providing around half of the company's sales revenues, Apple is also part owner of Imagination, holding about 8.5 percent of the company's shares.

In a tweet this morning, Moorhead noted, "Two sides of the coin to being an Apple supplier. What goes up will likely come down. When it does it can be ugly." And ARK Invest analyst James Wang also took to Twitter today, commenting, "Having Apple as your #1 customer is wonderful . . . until it's not."

Image credit: Imagination Technologies/Artist's concept.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
MORE IN MOBILE TECH
CRM DAILY
NEWSFACTOR NETWORK SITES
NEWSFACTOR SERVICES
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.