Imagination Technologies to sell two businesses in wake of Apple fallout

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


Share this article



Latest Businesses for Sale

Designer & Manufacturer of Consumer Entertainment Robotics (Fast Sale)
UK Wide

Expressions of interest for the business and assets are required by 5pm on 24th July 2019 with bids anticipated shortly thereafter. An opportunity exists to acquire the shares or alternatively the business and assets of this UK based, innovative comp...

Asking Price: Offers Invited
Turnover: £5m+

Manufacturer of Precision Instrumentation Products
UK Wide

*Trade Enquiries Only*. A leading UK designer, manufacturer and global distributor of critical components in specified compression fittings with a crucial safety function. Offers invited.

Asking Price: Offers Invited
Turnover: £1,900,000

Manufacturer of Nets
South West, UK

Manufacturer of Nets for everything except fishing. More than 130 years of continuous trading. The Company was founded in 1889 and is a very well established manufacturing business and has been a pioneer in the industry and consistently & successfull...

Asking Price: £450,000
Turnover: £522,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
19
 
Jul
 

Outdoor activity centre completes MBO | BUSINESS SALE

An outdoor water activity centre has been successfully sold ...

 
18
 
Jul
 
 
17
 
Jul
 

Preston caravan manufacturer seeks buyer following administration | ADMINISTRATION

A caravan manufacturing business in Preston is on the lookou...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
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...

 
11
 
Feb
 

Imagination Technologies’ Pure radio business for sale | BUSINESS SALE

As Sir Hossein Yassaie announced that he is to step down as ...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources