MIPS Technologies (MIPS) is selling its patents and its operating business to two separate buyers in a deal structured to maximize the value of both. The Silicon Valley designer of CPU processors and cores says it will sell most of its patents to Bridge Crossing, an acquisition vehicle of Allied Security Trust, for $350 million. Bridge will get 498 of MIPS’ 580 patents.
The remaining 82 patents are those that MIPS considers essential to its ongoing business. Those will be sold along with the operating company to Imagination Technologies for $60 million. Imagination will also get licensing rights to the 498 patents that Bridge Crossing is buying. MIPS says the total consideration paid to its shareholders will come out to $7.31 per share.
“By combining the technologies and skills of MIPS and Imagination, a leading multimedia, communications and embedded processor technology company, we believe that we can together create a powerful, well-differentiated and highly influential alternative to existing CPUs in the market,” said MIPS CEO Sandeep Vij. “The move is highly strategic and presents clear benefits to MIPS’ customers, employees and partners.”
Base stations, backhaul equipment and radio controllers worldwide are powered by chips that use the MIPS architecture. MIPS entered the market for mobile device processors in 2010, licensing its architecture to Ingenic Semiconductor, which used it to power the first Android 4.0 tablet to hit the market last year.
