Imagination Tech, Spurned by Apple, Now Up for Sale

The U.K.-based graphics chipmaker spurned in April by its main customer, Apple, put itself up for sale today after seeing a precipitous decline in its stock value.

Imagination Technologies announced that over the past few weeks it has seen interest from a number of potential buyers for its entire organization and has now launched a formal sale process. The company had already started sales proceedings for two separate parts of the business in May.

Apple had used Imagination's system-on-chip (SoC) technology in its devices for years, and its business had grown to account for around half of the chipmaker's revenues. Following the news in early April that Apple planned to make its own multimedia processors and phase out its use of Imagination's SoCs, the U.K. company's share prices collapsed by nearly 70 percent and have now only recovered some of their value.

Two Divisions Already Up for Offer

Under a dispensation Imagination Technologies received from the U.K. Takeover Panel, interested buyers will not have to publicly disclose their identities, the company said in a statement today. Additionally, potential bidders, who will be required to sign a confidentiality agreement, should contact the company's financial advisor, Rothschild, the firm added.

Meanwhile, the company's dispute with Apple over changes in their commercial relationship continues. Imagination Technologies announced its formal pursuit of a dispute resolution procedure with Apple on May 4, the same day it revealed its plans to sell its MIPS and Ensigma businesses.

The company is divided into three major divisions: MIPS, which produces low-power CPUs for mobile devices, wearables and Internet of Things devices; Ensigma, which offers technologies for wireless IP connectivity; and PowerVR, its graphics processor (GPU) division.

"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...

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