CSR expands in GPS market with Sirf takeover February 11, 2009
Posted by aikservices in CSR, GPS, Mobile, Sirf, Telecom, Wireless.Tags: CSR, GPS, Mobile, Sirf, Telecom, Wireless
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Bluetooth chip specialist CSR has agreed to merge with Sirf, a maker of GPS semiconductors. The merger is expected to diversify CSR’s product base and strengthen its position in the mobile phone market. Around 20 percent of mobile phones had GPS in 2008, and this is expected to double by 2012, CSR said. Under the terms of the deal, Sirf shareholders will receive 0.741 share in CSR for each Sirf share they hold. This will give Sirf shareholders 27 percent of the new company. Sirf’s executive chairman Diosdado P. Banatao and founder Kanwar Chadha will join the CSR board as non-executive director and executive director respectively; they have also both agreed to vote their shares in the merger. CSR expects annual cost savings of USD 35 million within two months of closing the deal. Sirf generated revenues of USD 232 million in 2008 and is expected to contribute immediately to profits. The merger is expected to close late in the second quarter of 2009.
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