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Imagination Tech to buy MIPS Tech for $100M

SUNNYVALE, Calif. (AP) -- Imagination Technologies Group PLC has agreed to buy MIPS Technologies Inc. for $100 million, as CEVA Inc. pulled out of a bidding war for the company.

Last month MIPS agreed to sell itself to Imagination Technologies for $60 million. MIPS then received an unsolicited offer of $75 million from CEVA Inc. Imagination Technologies then raised its bid to $80 million, with CEVA then offering $90 million.

MIPS, which is based in Sunnyvale, Calif., designs semiconductors used in networking and home-entertainment technologies, including digital televisions, Blu-ray players and routers.

MIPS said Monday that its shareholders would receive about $7.94 per share under the $100 million deal with Imagination Technologies.

CEVA said Monday that it won't submit any further buyout bids to MIPS, as paying a higher price wouldn't best serve shareholders.

Shares of MIPS added 12 cents to $7.89 in premarket trading.