Imagination Technologies, a leading designer of low-power graphics processing technologies, is facing a challenge with the acquisition of business and patent portfolio of MIPS. Little known chip developer Ceva has proposed MIPS’ board-of-directors to take over the company for $75 million, up from $60 million offered by ImgTec. In both cases, patents of MIPS will be sold to Bridge Crossing for $350.
MIPS has received an unsolicited proposal from Ceva to acquire all of the outstanding MIPS shares, following the consummation of the proposed patent sale transaction with Bridge Crossing and the proposed recapitalization, for $75 million in cash. Ceva's proposal is subject to the approval of its board of directors and a brief period of confirmatory due diligence.
MIPS had previously announced that Imagination Technologies would acquire the outstanding MIPS shares following the consummation of the proposed patent sale transaction with Bridge Crossing and the proposed recapitalization, for $60 million in cash.
The MIPS board of directors is evaluating Ceva's proposal and has not made a determination as to whether the proposal is superior to MIPS Technologies' pending transaction with Imagination Technologies. However, the MIPS Technologies board believes the CEVA proposal could reasonably be expected to lead to a superior transaction, so it has determined to engage in discussions with Ceva. Still, there can be no assurances that any definitive agreement or transaction will result from the Ceva proposal or MIPS discussions with Ceva.
The MIPS board continues to recommend the merger agreement with Imagination Technologies to its stockholders. The MIPS board is not withdrawing its recommendation with respect to the merger agreement and the merger, or proposing to do so, and is not making any recommendation with respect to the CEVA proposal.