The newly combined company will be a powerhouse in wireless and global positioning system (GPS) satellite navigation chips. CSR, based in Cambridge, England, makes wireless chips such as Bluetooth radios, while SiRF, based in San Jose, California makes GPS chips.
The $2.06 per share price is a steal made possible by the weak stock market. CSR paid a 91 percent premium over yesterday’s closing price, but CSR winds up with the $116 million in cash on Sirf’s balance sheet. That means it’s acquiring the company in effect for just $20 million in stock.
Acuity has been involved from the early stages of the deal and helped to define CSR’s GPS strategy which builds upon other Acuity-driven acquisitions for CSR including Nordnav and Cambridge Positioning Systems.