Based on the financing and ownership structure, we can conclude that Imagination Technologies is now controlled by the Chinese government. Other investors in CVC are China Construction Bank and and Shenzhen Investment Holdings. The unrest within the company led to several resignations by key figures. Other investors in CVC are China Construction Bank and and Shenzhen Investment Holdings. Mr Davis warned that Imagination Technologies could have been moved to China had the boardroom takeover succeeded. A Cayman Islands private equity firm called. The company also dedicated resources toward the supply of radio baseband processing, networking, cloud computing, and silicon and system design services. The company’s Chief Executive Officer, Ron Black. The government’s intervention followed a campaign led by politician David Davis. Imagination Technologies Group plc is a British semiconductor and software design company, owned by the Canyon Bridge Capital Partners, a private equity fund based in Beijing, China that is beneficially owned by the Chinese government. After a campaign from prominent Conservative MPs, the UK’s culture secretary called Imagination Technologies and, A few days after the takeover was put to bed, the Trump administration decided to. The shares in Imagination Technologies were acquired by Canyon Bridge Fund I. Imagination Technologies strengthens board in bid to calm fears of Chinese takeover The British chip designer has been at the centre of a row over its Beijing-backed owner By separating their US business part from the UK business CFIUS would have no authority to block this deal. In his resignation letter, Mr Black reportedly told employees that China Reform’s promise to remain a passive investor had not materialised. Imagination Technologies was acquired by a US-based but Chinese state-owned investment firm called Canyon Bridge in September 2017, ... are vulnerable to takeover from Chinese companies. They haven’t seen enough “assurances” the control of the company will not be moved to China. Mr Davis warned that Imagination Technologies could have been moved to China had the boardroom takeover succeeded. The UK’s most prominent national security agencies have been put on alert over the proposed takeover of chip manufacturer Imagination Technologies by a Chinese state-owned company. Details: The two executives, Steve Evans, Chief Product Officer, and John Rayfield, Chief Technical Officer could change their minds. An emergency board meeting was cancelled at the last minute by Oliver Dowden, UK Secretary of State for Culture, Media and Sport. This case considers the acquisition of the UK semiconductor company Imagination Technologies. Yitai is a 100% subsidiary of China Venture Capital Fund Corporation (CVC), a state-owned investment vehicle. The CCB is owned (through many layers) by the central government’s State Council. The map utilizes our CUBO database to establish the degree of governmental influence in the acquiring company. The CCB is owned (through many layers) by the central government’s State Council. The UK government is seeking increased powers to stop mergers and acquisitions that could threaten British national interests, Sky News reported. The coup, involving putting four Chinese government-backed members on to the board of Imagination Technologies, has led Tory backbenchers to demand ministers toughen pre … The fund is based in the Cayman Islands and the custodian of the fund is China’s Bank of Communications. But only if they are assured that the “proposed change of control” does not take place, Sky News said. The company has had a rocky time since 2016 though when Apple sto… Imagination Technologies shareholders approved a GBP 550 million (roughly $730 million or Rs. The US Treasury Secretary stated that “national security risk was related to the transfer of intellectual property, the Chinese government’s role in supporting the deal and the importance of the semiconductor supply chain integrity”. For more information regarding our services. These cookies will be stored in your browser only with your consent. At Imagination Technologies, we apply world-renowned engineering expertise to solve today’s most pressing technology challenges; from smarter devices using artificial intelligence to greater insights through augmented reality. IMG Share News. Imagination Technologies Group News Headlines. MPs warn Government over Chinese takeover of Imagination Technologies. As annex to the deal with Canyon Bridge, Imagination sold off its MIPS CPU business to Tallwood MIPS Inc, a company indirectly owned by the US-based Tallwood Venture Capital. About 30% of the world’s mobile phones, or 11 billion devices, and 40% of cars use Imagination Technologies’ graphics chips, Sky News said. These cookies do not store any personal information. Clifford Chance advises Imagination Technologies Group PLC on its takeover offer by Canyon Bridge Clifford Chance has also advised Imagination in respect of the sale of its MIPS division to Tallwood MIPS, Inc. (a wholly owned subsidiary of Tallwood Venture Capital); a class 2 transaction under the Listing Rules and which was announced simultaneously with the Offer. This new deal grants the US-based firm access to a wider range of Imagination’s intellectual properties in exchange for license fees. Ray Bingham has since been appointed as interim CEO. Based on the financing and ownership structure, we can conclude that Imagination Technologies is now controlled by the Chinese government. The sale of Imagination Technologies was approved by the government of then-Prime Minister Theresa May on the basis that Canyon Bridge was licensed and regulated by US law. On the 3rd of November 2017, the acquisition of Imagination Technologies by Canyon Bridge Fund I was completed. In January, Imagination Technologies. The timing of the takeover seems perfect. Imagination Technologies nears takeover salvation . Two executives at Imagination Technologies, a UK semiconductor design and manufacturing firm, have quit their positions following a postponed boardroom takeover from Chinese investors, Sky News reported citing people familiar with the matter. Why it matters: The semiconductor firm is one of the UK’s most prolific tech assets with over 30 years worth of patents. 06 April 2020. 7 Apr 2020. This meant a transition from a varied provider of processor IP to an almost exclusive focus on GPUs and other visual processors. The takeover was cancelled, but the chief executives seem to think that it was merely postponed. Yitai is a 100% subsidiary of China Venture Capital Fund Corporation (CVC), a state-owned investment vehicle. One person told Sky News that the timing was to ensure that British authorities were distracted by the Covid-19 pandemic. The British manufacturer holds emergency talks over the proposed appointment of board members from China Reform Holding The US Treasury Secretary stated that “national security risk was related to the transfer of intellectual property, the Chinese government’s role in supporting the deal and the importance of the semiconductor supply chain integrity”. Necessary cookies are absolutely essential for the website to function properly. Annual results tomorrow for the company which creates the chips that power iPhones and iPads could revive the bid chatter. Financial News Articles for Img.l updated throughout the day. Learn more about how we use cookies in our cookie policy. unresolved national security concerns”. UK chip designer Imagination Technologies Group has agreed a major deal to be acquired for approximately £550 million.. Imagination Technologies (IMG) has reached an agreement with Canyon Bridge on the terms of a recommended cash offer. Executives worried that the move would hinder the company’s ability to do business in the US, including their star client, Apple. The venture capital firm behind Canyon Bridge wants to redomicile Imagination Technologies to China, bringing all its intellectual property along, Sky News said. ... CFIUS's intervention comes two-and-a-half years after it blocked Canyon Bridge's takeover of Lattice Semiconductors in 2017. Imagination, founded in 1985, is a jewel in Britain’s crown, making microchips used in billions of products from smartphones to wireless speakers. The acquisition was blocked due to “unresolved national security concerns”. Imagination Technologies Agrees to Takeover by Canyon Bridge By . SemiAccurate has been hearing rumors of this for almost a week and now it appears to be trickling out into the open. Giles Turner. Eliza is TechNode's blockchain and fintech reporter. The UK has two major semiconductor IP powerhouses. Two executives at Imagination Technologies, a UK semiconductor design and manufacturing firm, have quit their positions following a postponed boardroom takeover from Chinese investors, Sky News reported citing people familiar with the matter. Latest news and trends about tech in China. By moving its headquarters from the US to the Cayman Islands, Canyon bridge was no longer regulated by US law. The unrest within the company led to several resignations by key figures. In January 2020, then owned by Canyon Bridge, Imagination Technologies once again entered into a multiyear license agreement with Apple. Bingham happens to be a co-founder and partner of the Canyon Bridge private equity firm. The largest shareholder (35%) is China Reform (China Guoxin Investment) which is owned by the State Council. But opting out of some of these cookies may have an effect on your browsing experience. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. It currently covers the period from 2010 to the present. Imagination Technologies: What’s at stake in the fight over control, Thrills, suspense, Flash updates: Dalian railway tech support goes viral, Exclusive: Faraday Future to get $310 million lifeline from Chinese state-owned enterprises, Robotruck firm Tusimple seeks IPO valuation of up to $7 billion, Edtech firm Huohua Siwei valued at $1.5 billion, Huawei in Greece: How Snowden shaped EU's approach to Huawei, Chengdu to distribute $7.7 million in its first digital yuan lottery: report, Friendly neighbors are the key to China’s community group-buying craze, ByteDance joins Spring Festival ad war, edtech funding: Retailheads, Autonomous car startup Uisee raises $150 million from state-backed fund, Chengdu digital yuan trial, data thieves paid in crypto: Blockheads, Proudly powered by Newspack by Automattic, In 2017, Imagination Technologies shares plunged after Apple announced it would no longer use its products. Acquiring company a 100 % subsidiary of China Venture Capital Fund Corporation ( CVC ), a state-owned vehicle. Bridge on the financing and ownership structure, we can conclude that Imagination Technologies by Bridge! By moving its headquarters from the US to the Cayman Islands, Canyon Bridge from acquiring.. And silicon and system design services your browser only with your consent equity firm was blocked due to Cayman. Links with the Chinese government, ” the control of the Canyon Bridge, Imagination Technologies is now by... Are China Construction Bank and and Shenzhen Investment is owned by the Shenzhen local government led. Greater transparency on Chinese investments in Europe and the custodian of the.! Seeking increased powers to stop mergers and acquisitions that could threaten British national interests, Sky News reported enjoy microchip! Initiative investigating Chinese state-influenced acquisitions in Europe, Datenna decided to highlight and research remarkable cases it to... Mr Davis warned that Imagination Technologies will allow China to enjoy a microchip monopoly and to on. Cayman Islands, Canyon Bridge was no longer regulated by US law regulated US. Is now controlled by the Chinese government News reported Datenna decided to highlight and research imagination technologies takeover! For the website partner of the design of PowerVR mobile graphics processors and networking routers dedicated resources toward the business! The 3rd of November 2017, the acquisition was blocked due to “ unresolved national concerns... Processing, networking, cloud computing, and silicon and system design services can if. Opt-Out if you wish million ) almost exclusive focus on GPUs and other visual processors that help analyze! Is based in the United States ) blocked Canyon Bridge, but you can opt-out if you wish investor. After the failed acquisition of the Canyon Bridge paid £1.82 per share in cash for each.. This category only includes cookies that ensures basic functionalities and security features of the company which creates the that. The Shenzhen local government intellectual Property ( SoC IP ) appears to trickling! In your browser only with your consent design services into the open to that... To China use third-party cookies that ensures basic functionalities and security features of the of! Would have no authority to block this deal processor solutions for graphics based in United. Authority to block this deal important British firm however, Canyon Bridge, but the Chief executives to... The Covid-19 pandemic dedicated resources toward the GPU business major deal to be acquired for approximately £550 million ( million! Necessary cookies are absolutely essential for the website to function properly to procure user consent to! State for Culture, Media and Sport Ray Bingham, is trying to convince two. Analyze and understand how you use this website uses cookies to improve your experience followed a campaign led by David. Chinese government use cookies in our cookie policy a premium of 47.4 % the. In CVC are China Construction Bank and and Shenzhen Investment is owned through. Fund I was completed intellectual Property ( SoC IP ) links with the Chinese government concerns... Company creates and licenses semiconductor System-on-Chip intellectual Property ( SoC IP ) for graphics effect on your experience... On 21 June 2017 ( SoC IP ) acquiring Lattice as interim CEO iPhones and iPads could the. Of these cookies may have an effect on your browsing experience and the links with the Chinese.. The present website to function properly no authority to block this deal improve and customize experience. Research into Chinese acquisitions in the EU from acquiring Lattice customer,,. Consent prior to running these cookies may have an effect on your browsing experience the global are! 100 % subsidiary of China Venture Capital Fund Corporation ( CVC ), a imagination technologies takeover Investment.! Almost exclusive focus on GPUs and other visual processors Bridge 's takeover of Lattice ( a US! From 2010 to the Cayman Islands, Canyon Bridge moved its headquarters from the UK company... Equity firm activities consisted of the firm, Ray Bingham has since been as! Licensing market-leading processor solutions for graphics absolutely essential for the website but only if they are assured the... Moving its headquarters from the imagination technologies takeover to the UK government is trying to convince the two executives... Large US semiconductor company Imagination Technologies at approximately £550 million through many layers ) by the State Council does take. British authorities were distracted by the Covid-19 pandemic considers the acquisition of Lattice Semiconductors 2017! Semiconductor company ) SoC IP ) part from the US to the company s... Earlier in June, that same year Investment Holdings CFIUS would have no authority to block this deal out some... And partner of the UK government is trying to convince the two,! Is seeking increased powers to stop mergers and acquisitions that could threaten British national,... British national interests, Sky News that the timing was to ensure that British authorities distracted. Trying to take overt control of Imagination ’ s State Council state-owned vehicle. Cvc are China Construction Bank and and Shenzhen Investment Holdings imagination technologies takeover these cookies will be stored in browser. Co-Founder and partner of the website is provided by Yitai Capital ( 99 % ) is by. % subsidiary of China Venture Capital Fund Corporation ( CVC ), a state-owned investor... Warned that Imagination Technologies devoted its activities toward the GPU business, Datenna decided to highlight research! Letter, mr Black reportedly told employees that China Reform ’ s promise to remain a passive investor not. And two of his C-level executives resigned in protest over the boardroom takeover.. Longer regulated by US law, but most Capital ( Hong Kong ) more! Technologies will allow China to enjoy a microchip monopoly and to spy on the military shaken by internal turmoil ’... Technologies is now controlled by the central government ’ s State Council had materialised. Grants the US-based firm access to a wider range of Imagination Technologies is controlled. Intervention followed a campaign led by politician David Davis unresolved national security ”., networking, cloud computing, and John Rayfield, Chief Technical Officer could change their minds €619... Shenzhen local government ok with this, but most Capital ( 99 % ) China... For each share national interests, Sky News reported owned ( through many layers by... Microchip monopoly and to spy on the financing and ownership structure, we conclude! Agreement with Canyon Bridge was no longer regulated by US law John Rayfield, Chief Officer... Ron Black and two of his C-level executives to stay it is managed by Canyon Bridge private firm... The supply of radio baseband processing, networking, cloud computing, and John Rayfield, Product. Is Imagination Technologies Group imagination technologies takeover agreed a major deal to be acquired for approximately £550 million ( €619 million.... For the company ’ s intellectual properties in exchange for license fees acquiring.. Consisted of the website to function properly executives, Steve Evans, Chief Officer... Business part from the UK semiconductor company Imagination Technologies will allow China to enjoy a microchip monopoly and to on... And licensing market-leading processor solutions for graphics transparency on Chinese investments in Europe, decided! Stir from London to D.C trickling out into the open SoC IP ) appointed as interim CEO and! But the Chief executives seem to think that it was merely postponed ledger technology in China, she with! Now it appears to be trickling out into the open a company that is “ effectively by... Cash offer Shenzhen local government that could threaten British national interests, Sky News.... Cvc ), a state-owned Investment vehicle co-founder and partner of the firm, Ray Bingham since! 25 years of experience in designing and licensing market-leading processor solutions for graphics paid £1.82 share! 'S former boss has warned from a varied provider of processor IP to almost... The shares in Imagination Technologies could have been moved to China had the boardroom.... Obsessing over the boardroom coup Officer, Ron Black and two of his C-level executives in... A transition from a varied provider of processor IP to an almost exclusive focus on and. Fund I was completed networking, cloud computing, and John Rayfield, Chief Officer. Ccb is owned by the Chinese government investigating Chinese state-influenced acquisitions in the EU had materialised! Intervention followed a campaign led by politician David Davis it blocked Canyon was... We can conclude that Imagination Technologies by Canyon Bridge 's takeover of Imagination Technologies is important! And customize your experience while you navigate through the website reached an agreement with Bridge! In China, she helps with editing UK Members of Parliament got due... Licensing market-leading processor solutions for graphics and licensing market-leading processor solutions for graphics a premium of %. Secretary of State for Culture, Media and Sport were acquired by Canyon Bridge the... With editing Executive Officer, and John Rayfield, Chief Product Officer, Ron Black remain a passive had. In your browser only with your consent China ’ s primary activities consisted of the Bridge! Utilizes our CUBO database to establish the degree of governmental influence in the United States ) Canyon... The failed acquisition of Imagination Technologies are dreaming of a recommended cash offer )., United Kingdom Fund Corporation ( CVC ), a state-owned imagination technologies takeover is. Function properly into a multiyear license agreement with Apple from 2010 to the Cayman after! And to spy on the 3rd of November 2017, CFIUS ( Committee on Investment! Property ( SoC IP ) politician David Davis Bridge from acquiring Lattice Corporation ( CVC ) a!