- Imagination Technologies announced a new license agreement with Apple that will grant the company access to its intellectual property.
- In 2017, Apple decided to end its relationship with the firm to design GPUs, or graphics chips, in-house.
- It is unclear what intellectual property Apple will gain access to with the new licensing deal.
Apple is all set to start working again with British chip designer Imagination Technologies, more than two years after dissolving its relationship with the firm.
In a short statement, the semiconductor company announced a “new multi-year license agreement under which Apple has access to a wider range of Imagination’s intellectual property in exchange for license fees.”
At that time the news sent the once-listed firm’s shares tumbling as much as 71% , due to concerns that it would heavily impact its future. And it ultimately did. Imagination Technologies subsequently got sold to China-backed private equity buyer Canyon Bridge Capital Partners for $727 million (£550 million).
The blow from Apple led to a public dispute as Imagination Technologies scrambled to reach an agreement with the Silicon Valley giant, once its biggest customer. It is unclear what intellectual property Apple will gain access to as a result of the new licensing deal.
Nevertheless, it’s a very good start to the year for Hertfordshire-based Imagination Technologies, which was seen as one of Britain’s most promising tech companies a few year back. The firm also competes with another U.K. company- SoftBank-owned Arm Holdings.
Apple shares rose by 86% over the course of 2019 as the company grew its services business with new offerings like cloud gaming and TV streaming . It is expected to release its first 5G smartphone later this year.