San Jose, Calif. —GPS chip maker SiRF Technology has agreed to be purchased by British Bluetooth/Wi-Fi supplier CSR in a stock-for-stock deal valued at approximately $136 million.
The merger should enable them to develop chipsets combining both wireless and location capability, a combination consumer electronics companies are asking for, said SiRF executive chairman and acting CEO Dado Banatao.
Banatao said 1.5 million to 2 million consumer devices could benefit from combo wireless and location chips.
The proposed deal calls for SiRF shareholders to receive 0.741 of an ordinary share in CSR for each SiRF share. Following completion, SiRF shareholders would own approximately 27 percent of the enlarged CSR group.
The merged company expects an annual cost savings of $35 billion through eliminating redundancies in R&D, marketing and other areas.
SiRF reportedly supplies chips for TomTom and Garmin.
The deal is subject to shareholder approval. The companies said they not expect any problems with regulatory clearance.