LONDON – Imagination Technologies Group, the graphics processor IP licensor, has raised its bid for processor IP company MIPS Technologies Inc. to $80 million in an attempt to outbid rival Ceva Inc.
Imagination (Kings Langley, England) originally bid $60 million to buy MIPS's operating business and certain patents while another U.K. company, ARM Holdings plc (Cambridge, England), would lead a consortium called Bridge Crossing that would acquire rights to major part of the MIPS portfolio of patents. Bridge Crossing would pay $350 million in cash to purchase the rights to the MIPS portfolio, of which ARM will contribute $167.5 million.
Ceva Inc. (Mountain View, Calif.) then offered $75 million for the operating business of MIPS (Sunnyvale, Calif.) on a similar basis to the Imagination bid.
Imagination said Monday (Dec. 10) that has signed a revised agreement for $80 million in cash with all the other terms and conditions of the acquisition remaining the same as for the previous bid.
In the year to June 30, 2012 MIPS made a loss before tax of $9 million on revenues of $60 million and on Sept. 30, 2012 MIPS had gross assets of about $20 million excluding cash and short-term investments, Imagination said. Imagination added that if its bid receives approval from MIPS' shareholders and meets other necessary conditions the deal is expected to complete during the first quarter of 2013.