Qualcomm agrees to buy CSR for £1.56bn

Chip designer Qualcomm will acquire UK-listed rival CSR for 900p in cash, or £1.56bn, equivalent to a 36% premium on Tuesday's closing price.

The American company is paying a multiple of 25.5 times' CSR's estimated calendar year 2015 price-to-earnings ratio.

"Good price and expect the deal to go through at 900p. Don't expect a counter offer as CSR has been shopped for the last month. Move profits from CSR into Imagination," analysts at Liberum say.