Apple’s announcement in April that between the next 15 months to two years, they would no longer be using Imagination’s graphic design technology plunged the company into freefall. The announcement caused a collapse in imagination’s shares that made them lose two third of their value, these woes made Imagination put itself up for sale in July. There were further allegations that Apple poached as much as 25 workers from Imagination including its former Chief Operating Officer, a senior designer as well as its vice president of hardware engineering. But a reprieve seems to have come for the endangered techs company as Canyon Bridge, a Chinese backed company has offered £550m for the company. Recall that last week, US President, Donald Trump barred the sale of US Chip maker Lattice Semiconductor to Canyon Bridge citing national security risks.
Since the announcement of the proposed 182p s share takeover, shares in Imagination have jumped more than 40%. Shares in Imagination surged to 172p in early trading on Monday but has since remained below the offer price.
Imagination’s Boss, Andrew Heath, said the takeover by China-backed Canyon Bridge was a “very good outcome” and would ensure it remained in the UK.
“Imagination has made excellent progress both operationally and financially over the last 18 months until Apple’s unsubstantiated assertions and the subsequent dispute forced us to change course.
“The acquisition will ensure that Imagination – with its strong growth prospects – remains an independent IP licensing business, based in the UK, but operating around the world.” He said.
Ray Bingham, partner at Canyon Bridge, made this pledge: “With our backing and investment, Imagination can continue to invest in developing its technology, attract and hire the best engineers and acquire and service customers globally.
“We are investing in UK talent and expertise in order to accelerate the expansion of Imagination, particularly into Asia, where its technology platform will lead the continued globalization of British-developed innovation.”
Imagination will be the latest UK tech firm to be sold to an overseas company, after ARM Holdings, Britain’s biggest technology firm, was acquired by Japan’s SoftBank for £24bn last year.