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Imagination for sale after being ditched by Apple

(Image credit: Image Credit: Pio3 / Shutterstock)

Imagination Technologies, the British firm which supplies Apple with processing designs, has reportedly put itself up for sale.

The move apparently comes after Apple told the company that it will no longer require its services. 

The American tech giant was Imagination's biggest customer, accounting for roughly half of the company's sales, however after Apple announced that it would start developing its own graphics chips, Imagination's shares plummeted 70 per cent. 

However, following Imagination's declaration that it would be up for sale, shares rebounded a healthy 21 per cent.

At the moment, the company’s market capitalisation is roughly £425 million, according to Reuters.

There are quite a few high-profile names being mentioned among potential buyers, including Apple itself. Aside from Apple, names like Qualcomm, Intel, Mediatek, and CEVA are being thrown around. Chinese companies are also being mentioned.

"Imagination Technologies announces that over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group," the company said.

"The board of Imagination has therefore decided to initiate a formal sale process for the group and is engaged in preliminary discussions with potential bidders."

Imagination claims it doubts Apple can go alone without violating its patents. Analysts are saying legal battles are quite likely. Imagination started a dispute resolution procedure in May with the U.S. giant, which is valued at $761 billion.

Image Credit: Pio3 / Shutterstock