Qualcomm Incorporated (NASDAQ: QCOM) today 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, Inc.’s (Qualcomm Technologies) current offerings by adding a compelling 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,” said Steve Mollenkopf, chief executive officer, Qualcomm Incorporated. “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.”
“We are pleased to join a recognized leader such as Qualcomm Technologies at an exciting time as customers race to satisfy the growing consumer desire for more and more seamlessly connected devices in their ‘smart’ homes, offices and cars,” said Joep van Beurden, chief executive officer, CSR. “Our employees have a strong history of pioneering new products and collaborating with customers to deliver critical technology requirements such as interoperability, low power and connectivity. Together with Qualcomm Technologies, we are better positioned to meet our customers’ needs today and into the future.”
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.
About Qualcomm Incorporated
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT, and its IoE businesses. For more than 30 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.
This news release contains forward-looking statements that are subject to risks, uncertainties and assumptions. Actual results could differ materially from those expressed or implied by such forward-looking statements. All statements other than those of historical fact could be deemed forward-looking statements, including but not limited to statements regarding: the expected benefits of the transaction; management plans relating to the transaction; the plans, strategies and objectives of management for future operations; product development, product extensions, product integration, new products, sales channels and customers, complementary product offerings and growth opportunities in certain business areas, including the Internet of Everything and automotive; the potential future financial impact of the transaction; and any assumptions underlying any of the foregoing. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to the possibility that expected benefits of the transaction may not materialize as expected; that Qualcomm may not be able to successfully integrate the products and employees of CSR or ensure the continued performance or growth of CSR’s products; as well as the other risks detailed from time to time in Qualcomm’s SEC reports, including its most recent Quarterly Report on Form 10-Q for the period ended June 28, 2015. Qualcomm does not undertake any obligation to update, or continue to provide information with respect to, any forward-looking statement, whether as a result of new information, future events or otherwise.
*This assumes GBP to U.S. foreign exchange rate of 1.56.