CSR Buys UbiNetics Software

CSR acquires UbiNetics' communication protocol software business for $48M in cash

July 28, 2005

2 Min Read

CAMBRIDGE, U.K. -- CSR plc ("CSR" or the "Company") (LSE:CSR), today announces that it has entered into an agreement with UbiNetics Holdings Limited to acquire UbiNetics' software business ("UbiNetics"), for a cash consideration of $48 million (the "Acquisition"). UbiNetics is based in Cambridge UK and specialises in communication protocol software for mobile phone manufacturers. The Acquisition will be financed entirely from CSR's existing cash resources.

The Acquisition will provide CSR with a strong R&D team to accelerate its existing software developments in Bluetooth, Wi-Fi and UWB (Ultra Wide Band). UbiNetics' team will also give CSR the capacity to extend its software offering to mobile handset customers. UbiNetics has 170 engineers located in Bangalore India and Shenzhen China, in addition to its Cambridge UK headquarters.

UbiNetics has been developing protocol stacks for GSM, GPRS, EDGE, WCDMA (UMTS) and HSDPA since 1999 and this valuable expertise will help to reinforce CSR's offering to cellular handset customers. CSR plans to use this existing intellectual property to provide multimode software to handset makers and to "bundle" UbiNetics' cellular multimode and HSDPA stacks with CSR's existing wireless protocol and DSP software. CSR will support UbiNetics' existing customers for its cellular multimode software, and will seek new business in this area, licensing its software to mobile phone companies.

The Board believes that the Acquisition will provide CSR with significant additional research and development engineering talent. CSR expects that this additional resource will increase R&D expenditure by approximately $4.5 million a quarter. UbiNetics currently has limited ongoing revenues.

Completion of the Acquisition is conditional inter alia on an agreed pre-sale reorganisation taking place within the UbiNetics group.

James Collier, Technical Director and Co-founder of CSR commented, "CSR continues to grow its software development activities. In the mobile phone market we see both call hand-off between cellular and local area networks and high speed data handling as key drivers for the widespread deployment of PAN and LAN. Together with UbiNetics, we will have all the experience, skills, track record and staff required to design the software for Universal Mobile Access and fixed-mobile converged phones. Looking ahead, we plan to extend the range of our products in order to simplify the complex integration task of the mixed hardware/software and multi-standard system that a cellular phone has become."

John Hodgson, CEO of CSR added, "In acquiring UbiNetics, we are exploiting our distinctive capabilities by extending CSR's capacity for sustainable innovation and by improving our ability to be flexible to market needs." Hodgson continued, "There is great synergy here, the UbiNetics team will join CSR to give us a world leading wireless software capability that will help sustain our clear competitive advantage."

CSR plc

UbiNetics Ltd.

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