Cambridge's CSR buys Zoran

CSR has signed on the dotted line to buy Zoran Corporation, a move that will allow the British chipmaker to add imaging and video to its wifi, bluetooth and location technology offerings.

The deal with the American company will set CSR back around $679 million. It has also been proposed that Zoran shareholders should  receive 1.85 shares in CSR in the form of American Depository shares for each Zoran share. In addition, CSR has said that it will aim to return up to $240 million to shareholders in a share buyback scheme.

For its dough CSR will get Zoran’s integrated technology, which offers location-aware multimedia features for devices including handsets, digital cameras and home entertainment equipment.

By merging these features with its technology CSR hopes to allow users to stream images from their camera to their PC or video conferencing from a Smartphone.  CSR said in a statement that the merge will also “provide a step change in CSR’s total scale and addressable market, creating a top 10 fabless semiconductor company.”

Joep van Beurden, CEO of CSR, said: “This is an exciting transaction on both a strategic and financial level.  Digital electronic devices are becoming increasingly connected and full of media-rich features, including the ability to stream images from your camera to your PC or video conferencing from your smartphone.” It’s that integration, again. 

CSR thinks that, combined with the share buyback scheme, the transaction should be double digit accretive in 2012.