Imagination sells itself to private equity firm after losing contract with Apple

Hello, so we meet again, how wonderful is that. We have some news for you.

Imagination Technologies is a UK based chip maker which used to provide mobile graphics components to Apple. The company has agreed to sell itself to Canyon Bridge which is a Silicon Valley-based private equity firm supported by the Chinese Yitai Capital. The news came after Apple announced that they would no longer require the services provided by Imagination technologies. Apparently, Apple was their one of the biggest customers. Canyon Bridge is said to pay £550 million ($743.2 million) for the deal.

 

 

The announcement made by Apple sliced the stock price of Imagination Technologies overnight. This created a vacuum or an existential crisis for the firm. The former made this decision because they are bringing in mobile graphics development department. This move will be manifested in the A11 Bionic chip which was revealed during the iPhone 8 and iPhone X hardware event earlier this month. The chip was specially designed to aid the graphics intensive operations like augmented reality and artificial reality. This will be the feature differentiating an Apple iPhone with other phones in the market in terms of optimization of hardware and software which is the signature style of the company.

Imaginations Technologies came forward in June and shared that they are putting itself for sale, they were even looking to take legal action to explore if Apple could bring GPU development in-house sans infringing on its technology. A spokesperson for the company commented that “Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination’s technology, without violating Imagination’s patents, intellectual property, and confidential information,”

It is still unclear whether there will be a settlement or not. I guess we will have to wait to know more. It seems like a sad affair but without the picture being clear we are not at the leisure of passing a comment.

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Imagination sells itself to private equity firm after losing contract with Apple
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