Under the terms of the deal, Imagination shareholders will get 182 pence cash per share, equal to a premium of almost 42 percent from 22 September, the last day before the transaction was announced, and one of over 47 percent from 21 June, before the company started its formal sale process. Imagination has advised shareholders to vote for the deal and said it has received irrevocable support in favour of the deal from Imagination directors, as well as from CFO Guy Millward.
Canyon Bridge said it will invest 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 remain based in the UK, with no job cuts expected.
Imagination also announced an agreement to sell its unit MIPS to Tallwood Venture Capital for USD 65 million. Of the total, USD 40 million will be paid in cash upon completion, with a deferred consideration of USD 25 million payable six months after. The deal is expected to close in October, subject to the approval of Imagination shareholders and the completion of the company’s reorganisation. Imagination said it will use the cash proceeds to reduce its debt, with the rest going for general corporate purposes.
The sale to Canyon Bridge remains dependent on completing the MIPS deal as well as regulatory approval in the UK. The latter may prove a lengthy process given Canyon Bridge is based in China. A week previously the company's proposed acquisition of Lattice Semiconductor was blocked by the US government due to security concerns.
