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

Natural Stone Supply Company: Sourcing/Processing/Distribution
Aberdeenshire, Scotland, UK

This company specialises in supplying the highest quality natural stone products, offering a complete turnkey solution to its customers from sourcing, through to processing, design and final distribution and delivery. Offers invited.

Asking Price: £1,050,000
Turnover: £1,100,000

RELOCATABLE


Precision Engineering Business
North West, UK

Precision Engineering Business for sale operating with a modern, well equipped machine shop, offering Engineering Development Modelling (EDM), CNC turning & milling, grinding, boring and fitting. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

LEASEHOLD


Accountancy Business
UK Wide

High quality practice with strong middle management on the market for the first time. Established: 25 to 30 years. Strong middle-tier management to support acquirer throughout the transition period and on an ongoing basis. Locations: Cheshire, Mersey...

Asking Price: £1,300,000
Turnover: £1,300,000


View more businesses for sale

News Search

Latest News

 
20
 
Sep
 

Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE

Thomas Cook Group is reportedly trying to piece together a l...

 
19
 
Sep
 

Smith & Williamson and Tilney to merge | MERGER

After revealing in August this year that talks were in place...

 
18
 
Sep
 

Infrastructure investment manager takes stake in LJLA | BUSINESS SALE

Infrastructure investment management group, Ancala Partners,...

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