MIPS Technologies' Board Says CEVA's Acquisition Proposal Superior to Imagination Proposal
MIPS Technologies (NASDAQ: MIPS) today announced that the MIPS Board of Directors has unanimously determined that a new proposal from CEVA, Inc. (NASDAQ: CEVA) to acquire the Company (the "CEVA Proposal"), constitutes a "Superior Proposal" to the merger agreement with Imagination Technologies Group plc., originally announced on November 5, 2012, including all amendments thereto (the "Merger Agreement").
CEVA proposes to acquire for $90 million (U.S.) in cash all of the outstanding MIPS shares, plus the breakup fee for the Imagination Merger Agreement, following the consummation of the previously announced proposed patent sale transaction with Bridge Crossing, LLC and proposed recapitalization. The CEVA Proposal has been unanimously approved by CEVA's Board of Directors.
MIPS has notified Imagination Technologies that the MIPS Board of Directors intends to effect an adverse recommendation change or terminate the Merger Agreement, but is prepared to continue negotiations if Imagination chooses to adjust the terms of the Merger Agreement. MIPS is obliged to negotiate with Imagination in good faith until the end of the business day on December 14, 2012 to make adjustments