Imagination announces ‘formal sales process’

While the company has been experiencing financial difficulties for a couple of years, the announcement by Apple earlier in 2017 that it would stop using PowerVR graphics technology in its phones and tablets saw Imagination’s share price drop by 70% in a day. Imagination remains in dispute with Apple over licensing payments.

Since then, the MIPS and Ensigma business units were put on the block, while a round of significant cost cutting was put in place.

The identity of potential suitors is not being revealed, although speculation suggests that companies such as Google and Qualcomm could be interested, as well as Apple. Chinese technology group Tsinghua has recently taken a 3% stake in the company.

Meanwhile, Imagination says talks regarding the MIPS and Ensigma disposals are ‘progressing well’.