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Blutooth firm CSR to buy GPS chipmaker SiRF

CSR, which makes chips and devices using wireless-link bluetooth, said the deal would lead to a stronger combined balance sheet, better customer relationships and technology leadership.

Shareholders in SiRF, a San Francisco-based GPS chip provider, would receive 0.741 CSR shares for each of their shares, valuing SiRF at about $136 million, CSR said. The deal is expected to be closed in the second quarter.

SiRF Technology specializes in making chips for location-aware gadgets made by companies such as Garmin and TomTom for devices used by drivers, hikers and boaters.

One of the pioneers of GPS technology, the firm is facing increasing competition from larger rivals like Texas Instruments, Broadcom and Infineon.

CSR reported fourth quarter revenue of $140.1 million on Tuesday, at the bottom of the range forecast by the company, and said it expected demand to remain weak during 2009.

The company reported a diluted loss per share of $0.05, against earnings of $0.26 for the same period a year ago, after it said global markets continued to worsen.

CSR said it saw no short-term alleviation in pressure on consumer spending, and forecast first quarter revenue in the range $65 million to $85 million.