Apple: Finalize the deal with Imagination
Apple finally revived a licensing relationship with UK-located chipmaker Imagination Technologies.
“It will allow Apple to access ‘a wide range of Imaginations intellectual property’ in exchange for fees under a new “multiyear’ deal,” Imagination said.
This moment comes about 3 years later of Apple’s decision to finish ties disrupted Imaginations business. Imagination said that the “multi-year, multi-use license agreement” would be replaced in the new deal, which both companies announced back in 2014. Terms were not told.
Imagination has been hailed as one of a handful of successful home-grown technology companies since founded in 1985.
The moment of questioning its survival appeared in 2017 when Apple announced it would stop using the Imagination’s graphics processing units (GPUs) in approval of developing the equipment in-house. At that time, the US giant considered for about half of Imagination’s revenues.
Months later, Imagination was bought for £550m by a Chinese- back private equity investment firm, Canyon Bridge.
Imaginations announced it’s latest graphics processing architecture last month, also calling it “The fastest GPU” ever released.
It was one of the jewels in the crown of the UK technology scene, but the past of Imagination Technologies is a cautionary tale for any business about the dangers of having all your eggs in one basket.
Being Apple’s supplier was a way to riches. At its peak in 2012, Imagination was worth more than £2 billion. When Apple cut out the ties from this relationship, it’s value falls apart.
Apple has already started poaching key staff and then a warning in 2017 that it was about to stop its use of the UK firm’s technology sent the shares to fall down.
Some parts of the business have been sold, the workforce has been cut out to 850, and Imagination now has a wide range of customers. And now it has resolved it’s conclusions with Apple.
The last decade hasn’t been a happy period for anyone anticipating to see a UK-owned tech business take on the world. Because ARM – the much bigger chip designer – is in the hands of Japan’s Softbank since 2016, and Anatomy sold to HP in a devastating deal in 2011.