Imagination Technologies prepares for further acquisitions in graphics chip sector

Got a warchest, gonna use it

Imagination Technologies prepares for further acquisitions in graphics chip sector
Following on from the news that it's spending up to $47 million to buy VoIP specialist HelloSoft, UK chip company Imagination Technologies has given notice it's on the look out for future deals.

To be funded by the placement of 12,208,950 new ordinary shares, or five percent of its share capital, Imagination has pointed out the 'proceeds will be used to fund certain complementary and strategic technology acquisitions, including the acquisition of HelloSoft'.

More specifically, it goes on to say that the cash will 'provide Imagination with the financial flexibility to execute one or more acquisitions of exciting bolt-on technologies which it has already identified to complement Imagination's graphics and visual IP capabilities'.

Sparking growth

Imagination's 3D graphics smarts are used in many smartphones including Samsung's Galaxy S and all iOS devices. Indeed, Apple has a 9.5 percent stake in the company.

"The HelloSoft and other acquisitions are part of our overall plans to continue to drive the group's development and growth," said CEO Hossein Yassaie.

"Our goals are consistent with developing Imagination as a top tier and globally influential technology provider in complementary silicon and software intellectual property areas that underpin current and future technological trends in mobile, consumer, enterprise and automotive segments."

Solid numbers

Further to the announcement, Imagination said its half year financials were in line with market expectations.

Its chip business had shipped around 100 million units in the six months to 30 October 2010, and had achieved good growth in licensing revenue and strong growth in royalty unit volume.

It will announce its full figures for the period on December 14.

[source: Imagination Technologies]
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A Pocket Gamer co-founder, Jon is Contributing Editor at which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.