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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 (opens in new tab).

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

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.