CEVA Now Offers $90 Mln For MIPS Operating Business - Update

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12/11/2012 8:45 AM ET

CEVA, Inc. (CEVA: Quote,CVA.L) Tuesday said it has submitted a further proposal to the board of directors of Sunnyvale, California-based chipmaker MIPS Technologies, Inc. (MIPS) to acquire its operating business for $90 million. MIPS will also receive payments on behalf of termination fee on its amended merger agreement with Imagination Technologies Group Plc (IMG.L).

Mountain View, California-based CEVA is an Israeli company, which provides DSP processor technology for the semiconductor industry.

On Monday, Imagination Technologies, which designs chips that power Apple Inc.'s (AAPL) iPhone and iPad, said it signed a revised deal to acquire the operating business and certain patent properties of MIPS Technologies for $80 million in cash, including license rights to all of the remaining patent properties. Imagination had revised its offer in response to the offer by CEVA.

Last month end, MIPS had 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, LLC and the proposed recapitalization for $75 million in cash.

In early November, MIPS announced that Imagination will 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.

CEVA shares closed Monday's regular trading at $15.06 on the Nasdaq. MIPS ended on Monday at $7.61.

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by RTT Staff Writer

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