On Friday, it was announced by British firm Imagination Technologies that a Silicon Valley-based CBFI investment will buy the company for 182 pence per share, valuing it at about £550 million ($742.5 million). It was disclosed that U.S. President Donald Trump had blocked the Chinese group last week from buying this company because of national security concerns. The CBFI is not planning on cutting any jobs after the proposed merger.
Imagination is selling American chip designer Mips, which it has owned since 2013. Selling Mips will avoid exposure to a review by the Committee on Foreign Investment in the US, the government panel that blocked its Lattice deal. Imagination thought it would sell Mips for $65m to Tallwood Venture Capital, an investment firm with offices in Palo Alto, California, and Wuxi, China.
The Imagination Technologies sale was first reported by the Financial Times, six months after Apple announced it no longer need their service. Before the sale, Imagination was providing Apple with mobile graphics components. In June of 2017, Imagination Technologies lost 70 percent of its worth after being abandoned by Apple, and the two companies remain in a legal dispute over royalties.
“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,” the company said earlier this year. In its note to investors, Imagination claims it remains in dispute with Apple, yet it is unclear when and under what terms a settlement might occur.
Canyon Bridge originated with capital from the Chinese government, and has subsidiary associations with Beijing’s space program. It manages about $1.5 billion on behalf of Yitai Capital Ltd, a Chinese state-owned company.
Lattice chips are field-programmable gate arrays that allow companies to put their own software on them for different uses. The company does not sell chips to the US military, but its two biggest rivals Xilinx and Intel’s Altera make chips that are used in military technology.