Broadcom Corporation is offering 35p a share for integrated circuit play Innovision Research & Technology.
California-based semiconductor specialist Broadcom Corporation is offering 35p a share for integrated circuit play Innovision Research & Technology.
Innovision’s chief executive officer David Wollen and his fellow directors are recommending Broadcom’s offer, which represents an 84 per cent premium to yesterday’s AIM closing price, and say 54 per cent of the shareholding has also ‘irrevocably’ undertaken to accept.
Broadcom, which made £150 million pre-tax last year on £3 billion turnover and sports a Wall Street price tag of £10 billion, believes the much smaller Innovision will complement its ‘market leading connectivity solutions’, argues the US company’s chief executive officer Scott McGregor.
Cirencester-based Innovision, which lost £2.9 million in 2009 on turnover 66 per cent up at £2 million, has a particular focus on near field communications (NFC) and radio frequency identification.
Wollen contends ‘now is an appropriate time to allow a global corporation with commitment and financial resources to progress NFC to the next level and commercial roll-out’.