The boards of both companies already approved the transaction, which is expected to close in the second quarter.
The companies say their combination will create a global company with significant scale to capitalize on the multifunction consumer electronics market. CSR’s customers include industry leaders such as Nokia, Samsung and LG. “We are excited about the market opportunity,” said Kanwar Chadha, SiRF’s founder and vice president of marketing, in a conference call with analysts.
Asked if the integration of the two companies will present a lag time and opportunities for competitors like Broadcom, Chadha said he doesn’t see that happening and customers are looking for the kind of best-in-class solution the combined company will offer.
SiRF has been working on a cost-reduction plan, including headcount, which is now at 571. For the fourth quarter of 2008, the company reported a net loss of $17.4 million compared with a net income of $0.7 million in the fourth quarter of 2007.
Upon closing of the transaction, SiRF stockholders are expected to own about 27 percent and CSR shareholders will own about 73 percent of the combined company.
Joep van Beurden, CEO of CSR, will lead the combined company as CEO, with the remaining leadership to be comprised of executives from both SiRF and CSR. The combined company will have headquarters in Cambridge, United Kingdom, and SiRF’s San Jose, Calif., headquarters will become the headquarters for CSR’s U.S. operations.
The transaction is subject to regulatory approvals and the approval of SiRF and CSR shareholders.