(iTers News) - Imagination Technologies plc has inked an agreement to acquire the operating business and certain patent properties, as well as license rights to all of the remaining patent properties, of MIPS Technologies, Inc. for US$60 million in cash.
In addition to the operating business of MIPS, Imagination’s purchase includes ownership of 82 key patent properties that are directly relevant to the MIPS architecture, and comprehensive license rights to all of the remaining 498 MIPS’ patent properties
In a separate transaction, the Divested Patent Properties are being sold to Bridge Crossing LLC, by MIPS for US$350 million.
The acquisition represents Imagination’s ambitious move to establish its presence in general-purpose CPU processor core market for mobile computing devices and that ARM and Intel have collectively entrenched.
It also will opens up new market opportunities for the world’s largest GPU, or graphics processor core IP provider to tap into processor core markets for TVs, set-top-boxes and networking equipment - once MIPS’s breadbasket.
"I believe that the combination of our existing Meta CPU technologies and activities with MIPS'; capabilities will help us to create a new force to be reckoned with in the CPU IP market. I am confident the acquisition will accelerate our growth in the substantial CPU IP market across many segments,” Hossein Yassaie, Chief Executive Officer, Imagination said
"We have been working closely with MIPS for several years now and have a number of mutual customers and partners. I believe that this transaction will be welcomed by both companies'; customers and the electronics industry at large," added he.
"The synergy between Imagination and MIPS makes the proposed transaction a notable step forward, not only for the two companies, but for the whole electronics industry,” said Sandeep Vij, president and chief executive officer, MIPS said.
The two companies’ shared goal was a good fit. After several years of having lost growth dynamics in matured TV and STB SOC processor core market, ill-fated and loss-making MIPS Technologies has been struggling to carve out new growth engines in mobile computing devices like smartphones and tablet PCs.
Under CEO Sandeep Vij’s leadership, MIPS started to create its MIPS architecture ecosystem for mobile devices in early 2010 around Android OS (see related video clips taken at Global Summit in Santa Cruz on April 15, 2010)
Today, MIPS is one of a few processor architecture that are directly supported by Android OS.
Weighed down by sluggish sales of its IP portfolio, MIPS has been hunting for new ownership to finance its venture into mobile markets.
Imagination Technologies also has been zeroing in on CPU core markets for mobile devices as well as PCs to servers as a new grow engine. At a press conference held in Seoul in May, John King, vice president with Imagination expressed its strong intention to make a stride into CPU core markets to address a wide range of applications markets all the way from mobile devices to PCs to servers. (see related video clips)
Watch out ARM !
The acquisition will further strengthen Imagination's position and opportunities in mobile, TV/set-top-box, consumer, and other embedded markets, as well as increase its penetration into networking, infrastructure and other markets where MIPS has enjoyed significant success, said Imagination in its PR statement.
The acquisition of MIPS adds highly respected RISC-based 32-bit and 64-bit CPU applications processor architectures that complement Imagination's existing Meta 32-bit embedded CPU IP product family. The architectures have similar philosophies in several key areas including hardware multi-threading whilst also bringing highly complementary capabilities, the statement also read.
Imagination has a broad range of processor core IPs from CPUs to GPUs to VPUs, or video processors to RPU radio processors.
MIPS pioneered modern 32-bit and 64-bit RISC CPU architectures. MIPS’ customers shipped over 700 million royalty earning units in its financial year ended 30 June 2012.
MIPS had 56 royalty-paying licensees in its financial year ended 30 June 2012. MIPS CPU intellectual property core licensing business generated c.US$60.0 million in revenue in its financial year ended 30 June 2012.
MIPS has recently launched new performance and area efficient Aptiv generation of cores.
The MIPS architecture powers some of the world's most popular electronic products such as digital televisions, set-top boxes, Blu-ray players, broadband customer premises equipment (CPE), WiFi access points and routers, networking infrastructure and portable/mobile communications and entertainment products.
Once all conditions met, including approval of MIPS' shareholders, the transaction is expected to complete around the first quarter of 2013.
Photos & Videos by JH. Bae