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Imagination to buy MIPS for $60million

Hossein Yassaie, chief executive, Imagination Technologies
Hossein Yassaie, chief executive, Imagination Technologies

Leading IP company Imagination Technologies is to acquire microprocessor IP developer MIPS Technologies in a two part deal which sees the latter selling the majority of its patent portfolio to Allied Security Trust (AST).

As part of the latter deal, MIPS has sold 498 of its 580 patents to Bridge Crossing, described as an acquisition vehicle for AST, for $350million. MIPS has retained what it says are 82 patents that are 'directly relevant' to the MIPS architecture. Once the Bridge Crossing transaction is complete, Imagination will acquire MIPS and the 82 remaining patents for $60m. The proceeds of the transactions will be distributed to MIPS shareholders. The deals are expected to complete early in 2013.

Hossein Yassaie, pictured, chief executive of Imagination Technologies, said: "The MIPS architecture is widely respected and is complementary to Imagination's existing cpu capabilities. I believe this proposed transaction will be welcomed by both companies' customers, including our mutual partners, and by the electronics industry at large. Post deal closure, Imagination will continue to support and expand the MIPS architecture and ecosystem, with the combined effort aiming to create a new industry leading force in cpu development and licensing."

Sandeep Vij, MIPS' ceo, noted: "By combining the technologies and skills of MIPS and Imagination, we believe that we can together create a powerful, well differentiated and highly influential alternative to existing cpus in the market. The move is highly strategic and presents clear benefits to MIPS' customers, employees and partners."

AST identifies and analyses high technology patents being sold on the market, circulates those to its 26 member companies and combines funds of interested member companies to purchase patents. It then sells the patents subject to licenses granted to participating members and interested third parties, with proceeds returned to the members that funded the purchase.

Author
Graham Pitcher

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