Advised NordNav Technologies, a world-class software-based GPS solutions provider, on its strategic acquisition by CSR
Jan 2007
acquired by
  • Sector: Systems & Deep Tech
  • Deal Type: Strategic Deals; Private Equity Deals
  • Engagement type: Sellside
  • Size: <$200m

Arma Partners is pleased to announce it acted as exclusive financial advisor to NordNav Technologies AB in its strategic acquisition by CSR plc (LSE: CSR), which was announced yesterday. The total price of $75m in cash, including earn-outs, for such an early stage company reflects NordNav’s position as the world leader in the development of software receivers for the volume GPS marketplace. CSR intends to combine NordNav’s software technology, with its industry-leading Bluetooth solution, to offer GPS for mobile phones at a sub $1 price point. By using NordNav’s software GPS receiver, rather than alternative hardware offerings, CSR has the potential to achieve this market breakthrough price point faster than any other company in the world.

The terms of the acquisition are an upfront cash payment of $40m with a further $35m in cash payable over the next 3 years, following completion of certain milestones by the management team of NordNav. NordNav, which is headquartered in Stockholm, was owned by its management and institutional shareholders, including 3i, Innovationskapital and Technopark, and the transaction marks a significant multiple on exit for all investors.

– NordNav is a European company that develops and licenses satellite navigation receivers for GPS for the mobile and defence industries

– Solutions enable high quality location functionality to be built into mobile phones and portable devices, including PDAs, digital cameras and music players

– NordNav’s software defined radio technology runs on a host processor and enables industry leaders TTFF and sensitivity

– CSR (LSE: CSR) is a leading semiconductor company

– CSR’s BlueCore features in over 60% of all qualified Bluetooth enabled products with industry leaders including Apple, Dell, IBM, Motorola, NEC, Nokia, Panasonic, Sharp, Sony and Toshiba

– CSR is headquartered in the UK, with offices in Japan, China, India, France, Denmark, Sweden and the US

– The acquisition will allow CSR to provide a software-based high performance Global Positioning System suitable for mass-market mobile handsets, Personal Navigation Devices, PCs and other portable devices for an incremental price that falls to less than $1 of the overall bill of materials when used with CSR’s Bluetooth

– CSR can leverage its strong Bluetooth customer base to bring the NordNav solution to a wide community of customers

– GPS functionality will help distinguish CSR’s combined connectivity offering in a very competitive market

– As well as bringing a significant new product offering, the acquisition will provide CSR with additional research and development engineering talent

– NordNav was only at the stage of R&D revenue, but in a very attractive market

– Arma Partners worked with the team to emphasise the synergies NordNav could bring to CSR which would justify a “strategic price”

– Arma Partners was able to focus efforts on an accelerated process that led to the deal closing less than 4 months after the engagement began