Apple buys into Imagination

Apple has bought a stake in a UK multimedia technology developer to safeguard it investment in its graphics chips.

It emerged the computer giant had bought 8.2 million shares for a 3.6 per cent stake in Imagination Technologies worth £3.2 million.

The Hertfordshire-based firm is best known for its Pure brand of digital radios and developing the technology supporting the digital audio broadcasting (DAB) standard.

But analysts have speculated that Apple has made the investment to consolidate its investment in the firm’s graphics chip designs, which it uses for its iPhone and iPod screen graphics such as its POWERVR range of visual internet protocol (IP) technologies.

It is thought unlikely that the stake will pave the way to any sort of takeover though, as Apple shares Imagination’s intellectual property (IP) with a heavyweight list of fellow licencees, including Sharp, Intel, NEC and Samsung.

Shares in Imagination Technologies were boosted when the news of Apple’s investment emerged, rising 23 per cent on close of trading on the London Stock Exchange yesterday.

Neither firm had made any comment on the deal at the time of writing.

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