Imag­i­na­tion Tech­nolo­gies put up for sale amid Ap­ple dis­pute

The Star (St. Lucia) - - BUSINESS -

UK chip de­signer Imag­i­na­tion Tech­nolo­gies - which is in dis­pute with Ap­ple, its largest cus­tomer - has put it­self up for sale.

Shares in the com­pany more than halved in April when Imag­i­na­tion said that Ap­ple was to stop us­ing its tech­nol­ogy.

The US com­pany uses the UK firm's chip tech­nol­ogy in its iPhones, iPads, and iPods un­der a li­cens­ing agree­ment.

Imag­i­na­tion said it had re­ceived in­ter­est from suit­ors in re­cent weeks so had be­gun a for­mal sale process.

It added it was now in preliminary talks with po­ten­tial bid­ders.

In April, Imag­i­na­tion said that Ap­ple, which ac­counts for about half of Imag­i­na­tion's rev­enues, was plan­ning to stop us­ing its tech­nol­ogy within "15 months to two years".

At the time, it ques­tioned whether Ap­ple would be able to de­velop its own com­puter chip de­signs with­out breach­ing Imag­i­na­tion's patents.

Last month, Imag­i­na­tion an­nounced it had started a dis­pute res­o­lu­tion pro­ce­dure with Ap­ple over li­cens­ing pay­ments.

In its lat­est up­date, the com­pany said it re­mained "in dis­pute" with Ap­ple.

Sep­a­rately, Imag­i­na­tion said the sale process for its MIPS and En­sigma busi­nesses - which was an­nounced in May - was "pro­gress­ing well", with in­dica­tive pro­pos­als re­ceived for both units.

News of the sale sent shares in Imag­i­na­tion up 15% in early trade to 142p. How­ever, the share price still re­mains nearly 50% be­low the level it was at be­fore Imag­i­na­tion an­nounced it was be­ing dropped by Ap­ple.

Ap­ple uses Imag­i­na­tion's tech­nol­ogy in its iPhones.

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