SiRF and CSR announce merger

10 Feb 2009

The GPS semiconductor specialist SiRF Technology Holdings and leader in Bluetooth chipset CSR plc have announced a definitive agreement to merge in a stock-for-stock transaction to create a global leader in connectivity and location platforms, unanimously approve by the Boards of Directors of both companies. The transaction is expected to close in the second quarter of 2009.

According to a statement of the companies, the combination will create the single largest pure play provider of integrated connectivity and location platforms and will be one of the top 10 fabless semiconductor companies in the world. Based on the results for fiscal year 2008, CSR and SiRF would have had sales of approximately $927 million together.

Under the terms of the agreement, SiRF stockholders will receive 0.741 of a CSR share for each share of SiRF common stock they own. Based on the closing stock price for CSR on February 9, 2009, this consideration would be equivalent to $2.06 of CSR stock for each SiRF share, representing total consideration of $136 million. This represents a premium to SiRF stockholders of approximately 91% over SiRF's closing stock price on February 9, 2009. Upon closing of the transaction, SiRF stockholders are expected to own approximately 27% and CSR shareholders are expected to own approximately 73% of the combined company.