Samsung to buy CSR's mobile handset ops for $310 million

Chipmaker CSR said South Korean handset giant, Samsung Electronics is buying its mobile handset operations for US$310 million in a bid to boosts its’ patent portfolio.

“The company has entered into a conditional binding agreement with Samsung Electronics Co Ltd for the transfer of CSR’s development operations in handset connectivity and location, including 310 people, together with certain rights over CSR’s technology in these areas for a consideration of US$310 million in cash,” CSR said.

The deal includes transfer of 21 US patents to Samsung,, which will be licenced back to the company in perpetuity on a royalty-free basis.

Samsung would invest US$34.4 million in return for new ordinary shares in the UK-based chipmaker, giving it a 4.9 per cent holding in the overall company.

Under the deal, nearly 12.8 per cent or 310 employees of total CSR’s workforce would be transferred to Samsung which includes 292 research and development employees and 18 marketing and support employees. CSR said it would return US$285 million to its shareholders on the completion of the transaction with Samsung.

CSR which caters to consumer electronics and mobile handsets companies said the deal will  on its focus growth market such as voice and music, automotive infotainment and imaging and bluetooth smart and would invest US$15-20 million for the purpose. The deal will close in Q4 2012.