SiRF To Merge With CSR In Stock Deal; Both Rally

SiRF Technology Holdings (SIRF) this morning said it agreed to be acquired in an all stock deal by U.K.-based CSR PLC (CSR.L.). The deal is expected to close in Q2.

SiRF makes GPS chips; CSR specializes in Bluetooth components.

Terms of the deal call for each SiRF share to be exchanged for 0.741 of a share of CSR. Based on yesterday’s closing prices, that would be about $2.06 a share of CSR stock for each SiRF share, for a total price of $136 million. The price is a 91% premium to yesterday’s close. On completion, SiRF holders will own 27% of the combined company, with CSR holders owning 73%. The deal will be tax-free to SiRF holders.

In pre-market trading, SiRF shares have jumped 82 cents, or 75.9%, to $1.90.

In London, CSR shares have rallied 9.7%, or 18 euros, to 204.50.