Imagination Technologies, a UK-listed graphics chip provider backed by US technology companies Intel and Apple, has taken a 25% stake in peer Toumaz Microsystems for £5m ($8m).
Toumaz, an Alternative Investment Market-listed company, has split into two businesses to cater for Imagination’s latest investment.
The company has formed Toumaz Microsystems for its integrated circuits for low power wireless communication, and Toumaz UK to cover health technology.
Toumaz will own 75% of Toumaz Microsystems and has moved its silicon integrated-circuit design team and related assets, such as its Telran chip (pictured), to the subsidiary. Imagination will invest a combination of cash, certain licences to Imagination’s hardware and software technologies, and supportive engineering resources, totalling £5m, in Toumaz Microsystems and will own 25% of the business.
Hossein Yassaie, chief executive of Imagination, said: "The extended collaboration with Toumaz, and our support of its newly established subsidiary Toumaz Microsystems, is part of an overall strategy of developing strategic partnerships and supporting the growth of ecosystems which will drive and exploit the opportunities of an increasingly internet-connected world."
Imagination has a 5.5% stake in Toumaz.