Imagination Technologies Group has completed the acquisition of the operating business and certain patent properties of MIPS Technologies as well as license rights to all of the remaining patent properties. Imagination has now commenced implementation of its detailed integration program. Further details on this will be provided in the interim management statement in March.

"We are delighted to have completed this acquisition, which has been welcomed by both companies' customers and the electronics industry at large, and also to welcome our MIPS colleagues to the Imagination family. The combination of MIPS' capabilities with our existing Meta CPU technologies will accelerate our growth in the substantial CPU IP market across many segments," said Hossein Yassaie, chief executive of Imagination.

The cash consideration of $100 million was paid on completion, financed from Imagination’s existing cash resources and a new acquisition facility. At the MIPS Stockholder Meeting held on 6 February 2013, MIPS stockholders voted by the requisite majority on all proposals to enable the acquisition to complete.

In addition to the operating business of MIPS, Imagination’s purchase includes ownership of 82 key patent properties that are directly relevant to the MIPS architecture, and comprehensive license rights to all of the remaining 498 MIPS’ patent properties.

Bridge Crossing LLC, an acquisition vehicle of Allied Security Trust (AST), will acquire 498 of MIPS' total 580 patent assets for gross proceeds of $350 million. MIPS will retain the remaining 82 patent properties that are directly relevant and key to the MIPS architecture, and will also be granted a royalty-free, perpetual license under all of the patent properties sold to Bridge Crossing. MIPS will also provide a restricted license to Bridge Crossing under the 82 retained patent properties. Allied Security Trust currently has 26 members, from Europe, North America and Asia, including Avaya, HP, IBM, Intel, Motorola, Oracle, Philips and Research in Motion.

For Imagination Technologies, which licenses multimedia processing solutions as well as graphics processing solutions, MIPS will be a door to a brand new business: high-performance microprocessor technologies.

Tags: MIPS, PowerVR, Imagination, Imagination Technologies, Business