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SiRF and CSR to Merge
The merger will make a stronger actor in a highly competitive market experiencing the economic downturn.
SiRF Technology Holdings has announced a definitive agreement under which SiRF and CSR will merge in a stock-for-stock transaction to create a global leader in connectivity and location platforms. The Boards of Directors of both companies have unanimously approved the transaction, which is expected to close in the second quarter of 2009.

CSR is a global leader in the Bluetooth connectivity business with core expertise in multiple connectivity technologies, while SiRF is a leader in the GPS location business with core expertise in GNSS and multifunction system-on-chip (SoC) location platforms. This strategic combination of market leaders will create a global company with significant commercial, operational and technical scale, uniquely positioned to capitalize on the large and growing multifunction consumer electronics market opportunity for connectivity and location technologies. Based on CSR’s and SiRF’s results for fiscal year 2008, on a pro forma basis, the combined companies would have had sales of approximately $927 million. The combination will create the single largest pure play provider of integrated connectivity and location platforms and will be one of the top 10 fabless semiconductor companies in the world. Customers of the combined company include four of the top five handset manufacturers, the top five personal navigation device makers, the top two auto-telematics suppliers, and other leading auto and consumer electronics providers. CSR and SiRF will have design and customer support centers located around the world.

Dado P. Banatao, Executive Chairman of the Board and Interim CEO of SiRF, said, “This transaction unites two market and technology leaders in their respective fields who together will be able to deliver a broad portfolio of innovative products that are critical to the rapid evolution of consumer electronics, mobile phones, mobile computers and automotive devices. Our market opportunity is being driven by growing consumer demand for greater functionality. Our ability to offer customers both leading edge location and connectivity technologies will be a key competitive advantage. Together with CSR, we can accelerate our strategic plans, realize growth opportunities faster than either company could on its own, diversify our revenues and capitalize on market opportunities to create value for shareholders.”

Commenting on the merger, Joep van Beurden, CEO of CSR, said, “Financially, strategically and commercially, this is a compelling transaction. We expect it to be significantly accretive, to enhance the enlarged group’s financial strength and cash position and to create new and wider revenue opportunities that neither party on its own could pursue as effectively. Strategically, this deal considerably strengthens our leadership position in the Connectivity Centre, a strategy which we believe encapsulates the way our marketplace is developing. Commercially, there is a powerful, complementary fit between the technologies, skill sets and customer relationships of both companies and the way we both see our customers’ needs evolving. Together we create a group substantially better placed both to meet the challenges of today and to emerge even stronger from the current testing market conditions.”

Kanwar Chadha, SiRF’s founder, Board member and Vice President of Marketing, said, “This merger unites two companies with a shared market vision and equally strong commitments to innovation, customers, shareholders and employees. CSR is the right partner to create additional growth opportunities for our company, and we believe that both our companies will benefit significantly by being part of a larger, dynamic and growing organization. Both companies have successfully competed against much larger companies in their respective fields, and we believe that this transaction, which combines our innovative technologies, will significantly enhance competition in the marketplace. We will take advantage of the strengths of each company to take our business to the next level, and we look forward to working with the CSR team to ensure an effective and seamless transition.”
MWC
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