updated - August 8, 2020 Saturday EDT
Qualcomm's acquisition of CSR of Britain for 1.6 billion pounds or approximately $2.5 billion sends rivals using Bluetooth on the edge.
San Diego, Calif.-based Qualcomm just bought chip maker CSR to add to its growing portfolio in different products like automotive electronics and mobile communications.
As Qualcomm believes, the deal was a long-term bet on the increasing trend of "Internet of Things."
Moreover, CSR's extensive knowledge in Bluetooth technology will further put Qualcomm in the market as a leading brand.
Bluetooth is "short-range radio technology that connects devices like stereos, watches and smartphones to Internet-linked smartphones and computers."
"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, including business areas such as portable audio, automotive, and wearable devices," stated chief executive of Qualcomm, Steve Mollenkopf.
Qualcomm bought CSR for 900 pence a share, higher than 57 percent compared to the market value of CSR shares in late August.
The pricey offer was reportedly a way of Qualcomm to shoo off competitors like Microchip Technology who would also like to buy the chip maker.
Furthermore, the bid is 27 times higher than the 2015 forecasted revenues, while Qualcomm's competitors traded only 20 times forward 12-month revenues, based on data collected by research firm Starmaine.
"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. We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK," Mollenkopf stressed.
Qualcomm, which focuses on smartphone technology and Wi-Fi devices decided to sell off it its handset business to Samsung back in 2012.
As the smartphone trend reportedly declines, Qualcomm aims to counter the decline by purchasing networked appliances.
This might prove a good move for Qualcomm, since according to industry analyst Gartner, a typical family in the 1st world will have over 500 Internet-enabled devices within eight years.
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