Fri, 05 May 2017 | BUSINESS SALE
British graphics chip designer Imagination Technologies is to sell two of its three major businesses as it gears up for a dispute with Apple.
The Hertfordshire-based firm said in a trading update it will “actively market” its MIPS and Ensigma businesses as it looks to restore its balance sheet.
Last month, iPhone maker Apple said it planned to stop using Imagination’s technology in the next two years in order to build its own.
Imagination has been a long-standing Apple supplier and its tech features in every iPhone and iPad. Imagination relies on Apple for half of its revenues, so the announcement has been a real blow to the firm.
In response, and after being “unable to make satisfactory progress with Apple today regarding alternative commercial agreements”, Imagination has formally started a dispute process with the tech giant. While not a legal action it is a process for reaching an agreement under contract.
To mitigate the potential loss of its flagship customer, Imagination is to break up, selling Ensigma and MIPS to allow it to focus on PowerVR, its graphics chip division.
MIPS is focused on the embedded processor markets, where it has a strong position, particularly in the automotive industry, and completed a number of deals with major customers during the last financial year.
Ensigma offers IP licensing for connectivity in mobile computing, unmanned systems and internet-of-things.
“Since 3 April 2017, the Board has reviewed the composition of the business,” Imagination said in a statement.
“While the group has continued to invest in its MIPS and Ensigma businesses, it has now decided to actively market these businesses for sale, concentrate its resources on PowerVR, and strengthen Imagination’s balance sheet.”
Find technology businesses for sale.
Subscribe to the Business Sale Report here
Highly experienced team in place, with a suitable candidate to fill an upper-level management position, if required. Serves a large regional client base, with clients operating in industry sectors including education, healthcare and facilities.
Strong pipeline of future work, which is currently valued at £2m. Provides over 2,500 unique automotive engine components for a comprehensive range of leading brands, catering to OEMs and wholesalers worldwide.
SIA / Safe Contractor approved, manned security and accredited training course specialist with impressive nationwide reputation and client base.
24
|
Apr
|
Middlesbrough metal recycling firm acquired from administration | BUSINESS SALE
Cupral Group Limited, a metal recycling business based in Mi...
24
|
Apr
|
Automotive parts supplier secures PE backing | BUSINESS SALE
Rimmer Bros, a Lincoln-based restorer and supplier of replac...
24
|
Apr
|
Kitchen firm expands construction sector offering with new acquisition | BUSINESS SALE
Nolte Kitchens UK has completed the acquisition of contracts...
25
|
Aug
|
Coventry-based bus company enters administration | ADMINISTRATION
Coventry-based bus operator Travel de Courcey has entered ad...
20
|
Mar
|
Warrington construction company enters administration | ADMINISTRATION
A prominent construction business headquartered in Orford Gr...
07
|
Mar
|
MBO completed at Nottingham IT supplier | MBO/MBI
A Nottingham-based firm that provides IT solutions to a rang...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.