Former Apple Inc. (AAPL) supplier Imagination Technologies plc reportedly will be acquired by the same Chinese firm whose acquisition of an American semiconductor company was blocked on national security grounds.
According to reports late on Friday, Sept. 22, Imagination, a chip maker, will be acquired for about £550 million ($743.8 million) by Canyon Bridge Capital Partners, a private equity fund backed by China Venture Capital Fund Corp. Ltd., a Chinese corporation owned by Chinese state-owned entities.
Imagination in June retained Jefferies and Rothschild to find a buyer after it lost Apple, its biggest customer. Apple will no longer use Imagination's intellectual property in its new products in two years time. Under the current license and royalty agreement Imagination will not be eligible for royalty payments.
Canyon Bridge previously agreed to acquire Lattice Semiconductor Corp. (LSCC) for $1.3 billion. On Sept. 13, President Donald Trump issued an order blocking the deal following the recommendation of the Committee on Foreign Investment in the U.S., an interagency panel led by the Treasury Department.
The White House said that the transaction would cause national security risks including "the potential transfer of intellectual property to the foreign acquirer, the Chinese government's role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States Government, and the use of Lattice products by the United States Government."
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