Samsung and chipmaker CSR have announced yesterday the acquisition by the Korean company of the handset connectivity (Bluetooth and WiFi) and location R&D centers of CSR for $310 million. This acquisition excludes the indoor location business of CSR.
The transaction includes 310 people to be transferred to Samsung, together with certain rights over CSR’s technology, but it does not include the products and revenues associated with CSR’s existing handset products.
In addition, he transaction will grant Samsung a worldwide, perpetual, royalty-free, non-exclusive license of CSR’s intellectual property rights used in its handset connectivity and location products. Samsung also acquires 21 U.S. patents, including their respective international counterparts, which will be licensed back to CSR in perpetuity on a royalty-free basis.
The transaction includes 310 people to be transferred to Samsung, together with certain rights over CSR’s technology, but it does not include the products and revenues associated with CSR’s existing handset products.
In addition, he transaction will grant Samsung a worldwide, perpetual, royalty-free, non-exclusive license of CSR’s intellectual property rights used in its handset connectivity and location products. Samsung also acquires 21 U.S. patents, including their respective international counterparts, which will be licensed back to CSR in perpetuity on a royalty-free basis.
For CSR the strategy is to stop investing in the development of its handset connectivity and GPS business and refocus the company on 5 key markets. According to CSR statement: “the transaction immediately increases CSR’s focus on its five high growth markets of Voice & Music, Automotive Infotainment, Indoors Location, Imaging and Bluetooth Smart; accelerates its higher margin platform strategy and improves CSR’s overall market position.
As it regards specifically to GPS chipsets, it was clear it had become very difficult for CSR to compete against silicon giants Broadcom and Qualcomm in the smartphone and tablet space. CSR only won a limited number of designs in that segment in the last two years.
For Samsung this acquisition strengthen its smartphone technology know-how and its intellectual property portfolio. The later is especially important having in mind the current patent war raging between Apple and Samsung.
As it regards specifically to GPS chipsets, it was clear it had become very difficult for CSR to compete against silicon giants Broadcom and Qualcomm in the smartphone and tablet space. CSR only won a limited number of designs in that segment in the last two years.
For Samsung this acquisition strengthen its smartphone technology know-how and its intellectual property portfolio. The later is especially important having in mind the current patent war raging between Apple and Samsung.
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