Qualcomm to buy CRS for $2.5 billion

Mobile chip maker Qualcomm has offered $2.5 billion for CSR, a Cambridge, U.K., firm founded in 1999 that develops software and chips for Bluetooth and other wireless connectivity protocols. The bid comes just hours before a deadline set for another U.S. chipmaker, Microchip Technology, to make a fresh bid after its initial offer was rejected in August.

Qualcomm leads the pack of chip manufacturers for mobile devices, and has sights set on achieving similar dominance among the myriad connected devices that make up the Internet of Things. CSR’s expertise in wireless connectivity is a natural fit: Its Bluetooth chip designs, in particular, are widespread in wireless audio products and connected cars.

The offer now on the table is a more than 50 percent markup over CSR’s share price as of August, when the first bid came in. In 2013 the firm brought in just North of $700 million in revenue with an operating profit of $104.3 million.

Though the opportunity remains for a counteroffer, analysts told Reuters that the chance of Microchip Technologies or another company outbidding Qualcomm is slim.