LONDON - British chip firm CSR has sold its mobile phone connectivity and location technology to Samsung for $310 million in cash in a deal that boosts the South Korean company's patent portfolio.
Samsung will also invest $34.4 million in buying a 4.9 percent stake in CSR at a price of 223 pence a share, CSR said in a statement on Tuesday.
CSR Chief Executive Joep van Beurden said the deal unlocked value for shareholders, and would enable the company to focus on areas where it had a leading market position, such as audio, automotive, indoor location, imagining and bluetooth.
"I believe that under Samsung's ownership the handset operations will be in a better position to prosper in the global handset market," he said.
CSR's position in handsets had faltered in recent years because its chips had been included in few fast-selling smartphones, although it was trying to make up lost ground with a new wi-fi bluetooth combination chip.
It has had more success in its audio technology, where its technology is used in high-end headphones such as those made by Sennheiser and the "Beats by Dr Dre" range.
The British company said it would return up to $285 million to shareholders following the deal, which is expected to complete in the fourth quarter.