Qualcomm completes $2.4B acquisition of CSR to accelerate growth in Internet of Everything and automotive segments
Qualcomm Incorporated announced that its indirect, wholly-owned subsidiary, Qualcomm Global Trading Pte. Ltd, has completed its acquisition of CSR plc (CSR), a leading fabless provider of end-to-end semiconductor and software solutions for the Internet of Everything (IoE) and automotive segments.
The acquisition, which was completed at an enterprise value of approximately $2.2 billion ($2.4 billion equity value), complements Qualcomm Technologies’s current offerings by adding a portfolio of new products, sales channels and a large number of customers in the areas of IoE and automotive—both key growth priorities for Qualcomm Technologies.
Cambridge Silicon Radio Limited is currently an indirect, wholly-owned subsidiary of CSR that operates, along with its affiliates, substantially all of CSR’s engineering, research and development functions, along with substantially all of the CSR products and services businesses. Cambridge Silicon Radio Limited will be renamed Qualcomm Technologies International, Ltd., which will become a subsidiary of Qualcomm Technologies.
As we strive to connect billions more devices, automobiles and people within the Internet of Everything, we are enthusiastic about the growth that this combination will foster. CSR’s complementary strengths in connectivity, audio technologies and systems-on-chips will help strengthen Qualcomm Technologies’ position in the IoE and automotive industries, and add to a broad and highly advanced portfolio.—Steve Mollenkopf, CEO Qualcomm Incorporated
While the accounting for the transaction is not yet finalized, Qualcomm estimates that on a Non-GAAP basis the acquisition will be modestly accretive to earnings per share in fiscal 2016 consistent with prior guidance. In addition, based on preliminary estimates, Qualcomm expects the transaction to be modestly dilutive to GAAP earnings for fiscal 2016 driven primarily by acquisition-related items.