Apple Partners With Chipmaker It Broke Up With Three Years Ago

U.K. chipmaker Imagination Technologies Group plc has signed a new deal with Apple Inc. AAPL after a three-year breakup.

What Happened

In April 2017, U.K. chipmaker Imagination Technologies Group plc saw its shares plummet by 70% after the California-based tech company said it wouldn't use the company's intellectual property any longer.

"[We have] replaced the multi-year, multi-use license agreement with Apple, first announced on February 6, 2014, with a new multi-year license agreement under which Apple has access to a wider range of Imagination's intellectual property in exchange for license fees," the chipmaker announced on Thursday.

Imagination Technologies didn't mention which IP it has agreed to share with Apple. According to Bloomberg, it is likely related to graphics and artificial intelligence.

Why It Matters

Imagination had previously contested if Apple could manufacture the graphic chips in-house with infringing on Imagination's IP.

"Apple has not presented any evidence to substantiate its assertion that it will no longer require Imagination's technology, without violating Imagination's patents, intellectual property, and confidential information," Imagination said in May 2017, as the two companies engaged in a public spat.

Apple responded by saying that Imagination's claims are " inaccurate and misleading."

The company was ultimately sold to Chinese state-backed private equity firm Canyon Bridge Capital Partners for 500 million pounds in September that year.

Price Action

Apple's shares closed 0.73% higher at $293.65 on Tuesday.