Samsung has purchased British chip maker CSR's mobile phone connectivity and location technology for $310m, in part to bolster its patent portfolio.
The deal was announced on Tuesday and will see 21 patents transferred to Samsung for an added layer of legal protection against lawsuits from competitors like Apple.
Under the agreement, Samsung will also acquire all of the resources devoted to the development of CSR's handset connectivity technology and a significant proportion of the resources dedicated to the development of handset location technology.
The deal will also see 310 CSR employees move over to Samsung. CSR itself will retain control of its existing Bluetooth, GPS, Wi-Fi and NFC connectivity products and the associated revenues.
As part of the deal Samsung will also purchase a 4.9 per cent stake in CSR at a price of 223p a share, a deal worth $34.4m.
CSR will remain an autonomous company under the terms of the agreement and will refocus its business model to focus on other technologies.
"This transaction will accelerate our transformation into a higher gross margin platform company operating in attractive growth markets where we have a leading market position," said CSR chief executive, Joep Van Buerden.
"As a result, we will be a more competitive, more differentiated and more profitable business. I believe that under Samsung's ownership the handset operations will be in a better position to prosper in the global handset market."
The deal is expected to close in the fourth quarter, pending regulatory approval.
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