Chip company Qualcomm is acquiring CSR for £1.56bn and will use the Cambridge processor firm and its technology as part of a drive into the Internet of Things.
Qualcomm will absorb the firm wholesale and use CSR kit in a range of connected systems.
"The addition of CSR's technology leadership in Bluetooth, Bluetooth Smart and audio processing will strengthen Qualcomm's position in providing critical solutions that drive the rapid growth of the Internet of Everything, including business areas such as portable audio, automotive and wearable devices," said Steve Mollenkopf, chief executive of Qualcomm Incorporated.
"Combining CSR's highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth.
"We look forward to working with the innovative CSR team globally and further strengthening our technology presence in Cambridge and the UK."
A full official announcement released in accordance with UK takeover rules (PDF) is online now, and shows the CSR board in broad support of the deal.
Ron Mackintosh, CSR chairman, said that, while the firm is well placed for success on its own merits, the Qualcomm deal offers a quick and positive boost for shareholders.
"While the CSR directors believe that CSR is now strongly positioned to execute its strategy of delivering growth and sustainable returns in the medium and long term, we believe that the offer from Qualcomm provides CSR shareholders with an immediate and certain value which is highly attractive," he said.
"The CSR directors believe the acquisition recognises CSR's long-term prospects and growth potential, and takes into account the dynamics of the global market and the competitive landscape in which it operates.
"The board believes this represents a very attractive outcome for CSR shareholders, customers and employees."
Clive Longbottom, an analyst with Quocirca, said that Qualcomm's purchasing decision is wise, but suggested that the proof of its success would come once the firms are fully integrated.
"This looks like a play for the Internet of (reasonably sized) Things, allowing Qualcomm to become more of a player in things like the connected vehicle," he said.
"Qualcomm could go for embedded mobile capabilities allowing the car to become a mobile hub, with CSR providing the capabilities for all sorts of devices to be very closely connected to things.
"Similarly, matching standard Qualcomm chipsets in mobile handsets with wearables around a person is an obvious play.
"Overall, it looks like a clever move. We'll have to see how the cultures go together and whether Qualcomm can make it work and recoup the outlay rapidly enough."
CSR rejected an offer from US firm Microchip Technologies in late August.
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