Although MIPS has hardly been a significant player on the market of microprocessors in the recent years, its operating business seems to pose a substantial interest to both Imagination Technologies and Ceva as both this week increased their offers to MIPS.
ImgTec, a graphics and multimedia processing technologies licensor, this week raised its bid for MIPS operating business to $80 million, up from $60 million original offering. Ceva, a leading licensor of silicon intellectual property (SIP) platform solutions and DSP, also announced this week that it submitted a further proposal to acquire the operating business of MIPS for $90 million plus the payment on MIPS' behalf of the termination fee to Imagination Technologies pursuant to MIPS' existing merger agreement, as amended, with Imagination.
MIPS board of directors announced this week that it unanimously determined that a new proposal from Ceva, as a “superior proposal" to the merger agreement with Imagination Technologies. MIPS has notified Imagination Technologies that its board of directors intends to effect an adverse recommendation change or terminate the merger agreement, but is prepared to continue negotiations if Imagination chooses to adjust the terms of the merger agreement, e.g., increase its bid.
It is necessary to note that both Ceva and ImgTec are fighting for MIPS operating business only as patents of MIPS will be sold to Bridge Crossing for $350 million.