LONDON – The bidding war between graphics IP licensor Imagination and DSP IP licensor Ceva for MIPS Technologies Inc. has reached $100 million. MIPS is a long-established licensor of processor architectures and IP.
Imagination Technologies Group plc (Kings Langley, England) has raised for a second time to try and outbid Ceva Inc. (Mountain View, Calif.) which had previously bid $90 million.
Imagination started the process in early November with a bid of $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 the major part of the MIPS portfolio of patents as a form of legal protection. Bridge Crossing is set to pay $350 million in cash to purchase the rights to the MIPS portfolio, of which ARM will contribute $167.5 million.
Imagination said on Dec. 17 that is has signed a revised agreement to acquire the operating business, certain patent properties and license rights to the rest of the patent properties of MIPS Technologies Inc. for $100 million in cash. All the other terms and conditions of the acquisition are the same as the previous bids, Imagination said.
Imagination added that the acquisition would be financed from existing cash resources and an acquisition facility that has been set up. The deal is expected to close in the first quarter of 2013.
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