Deal of the Week: Qualcomm to Buy British Chip Maker CSR for $2.5B Announcement Date October 15, 2014 Acquirer Qualcomm (Nasdaq: QCOM) Acquirer Description Wireless technology company that is one of the world’s largest chip makers Founded in 1985 and headquartered in San Diego, California Acquirer Financial Mkt Cap: $119.9 billion LTM EBITDA: $8.9 billion Statistics EV: $101.2 billion LTM EV / Revenue: 3.9x LTM Revenue: $26.3 billion LTM EV / EBITDA: 11.4x Target Company CSR (LSE: CSR.L) Target Description A pioneer in Bluetooth wireless technology that designs and develops semiconductor integrated circuits primarily in Asia, the Americas, and Europe Founded in 1999 and headquartered in Cambridge, U.K. Target Financial Mkt Cap: $2.3 billion LTM EBITDA: $62.7 million Statistics EV: $2.0 billion LTM EV / Revenue: 2.4x LTM Revenue: $834.8 million LTM EV / EBITDA: NM Price / Consideration Price: $2.5 billion Consideration: Cash Acquirer Advisor Deutsche Bank Target Advisor JPMorgan Chase and Goldman Sachs Rationale The deal for CSR comes as many of the world’s largest chip makers seek to take advantage of the growing demand for Internet‐connected devices in everyday life As the growth of the smartphone market continues to slow, particularly in the West, large chip makers have been forced to turn their attention to other sectors like the automotive and household industries Steven M. Mollenkopf, the chief executive of Qualcomm, said, “The addition of CSR’s technology leadership in Bluetooth, Bluetooth Smart and audio processing will strengthen Qualcomm’s position in providing critical solutions that drive the rapid growth of the Internet of Everything, including business areas such as portable audio, automotive and wearable devices” Deal Points Under the terms of the deal, Qualcomm would pay CSR’s shareholders £9 a share for their holdings in the chip maker, representing a 27% premium on CSR’s closing share price on Tuesday Of Note Qualcomm’s acquisition of CSR comes after the British chip maker rebuffed an earlier takeover approach from its American rival Microchip Technology [email protected] www.pillarsofwallstreet.com .