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| Version 0 | Version 1 |
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| Imagination puts itself up for sale amid Apple dispute | Imagination puts itself up for sale amid Apple dispute |
| (7 months later) | |
| Shares in Hertfordshire chip designer surge 20% after it announces start of formal sale process | |
| Julia Kollewe | |
| Thu 22 Jun 2017 09.03 BST | |
| Last modified on Mon 27 Nov 2017 21.25 GMT | |
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| Shares in British chip designer Imagination Technologies rallied 20% after the company, which is in dispute with Apple, put itself up for sale. | Shares in British chip designer Imagination Technologies rallied 20% after the company, which is in dispute with Apple, put itself up for sale. |
| The Hertfordshire firm, which designs the graphics processors used in smartphones and other electronic devices, suffered a major blow this year when Apple, its largest customer, pulled the plug on its chip supply deal, with effect from 2019. Apple accounts for half Imagination’s revenues, and its shares slumped 70% on the day of the news. | The Hertfordshire firm, which designs the graphics processors used in smartphones and other electronic devices, suffered a major blow this year when Apple, its largest customer, pulled the plug on its chip supply deal, with effect from 2019. Apple accounts for half Imagination’s revenues, and its shares slumped 70% on the day of the news. |
| Imagination said on Thursday that “over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group. The board of Imagination has therefore decided to initiate a formal sale process for the group and is engaged in preliminary discussions with potential bidders.” | Imagination said on Thursday that “over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group. The board of Imagination has therefore decided to initiate a formal sale process for the group and is engaged in preliminary discussions with potential bidders.” |
| The shares jumped 20% in early trading and later traded 16.4% higher at 143.75p, valuing Imagination at just over £400m. Before the shock news about Apple on 3 April, Imagination shares traded at 268.25p. | The shares jumped 20% in early trading and later traded 16.4% higher at 143.75p, valuing Imagination at just over £400m. Before the shock news about Apple on 3 April, Imagination shares traded at 268.25p. |
| The firm said it remained in dispute with Apple, which it accuses of infringing its intellectual property rights. The US tech giant came close to buying the UK company just over a year ago. | The firm said it remained in dispute with Apple, which it accuses of infringing its intellectual property rights. The US tech giant came close to buying the UK company just over a year ago. |
| Neil Wilson, senior market analyst at ETX Capital, said buyers were looking to capitalise on the 60% slump in the Imagination share price since early April. He said: “A pretty ignominious end to what was a great British tech success story.” | Neil Wilson, senior market analyst at ETX Capital, said buyers were looking to capitalise on the 60% slump in the Imagination share price since early April. He said: “A pretty ignominious end to what was a great British tech success story.” |
| Imagination has been trying to sell its Mips and Ensigma businesses since early May to shore up its finances, and said it had received indicative proposals for both. | Imagination has been trying to sell its Mips and Ensigma businesses since early May to shore up its finances, and said it had received indicative proposals for both. |
| Wilson said: “These were both strong potential growth areas that could have delivered lasting revenue accretion to offset the loss of Apple. That was a pretty dire scenario, akin to selling off the family silver to keep the estate going a little longer. Now the shutters are up and a buyer sought [for the entire company].” | Wilson said: “These were both strong potential growth areas that could have delivered lasting revenue accretion to offset the loss of Apple. That was a pretty dire scenario, akin to selling off the family silver to keep the estate going a little longer. Now the shutters are up and a buyer sought [for the entire company].” |
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