Imagination Technologies puts itself up for sale amid Apple dispute

Britain-based Imagination Technologies, former chip designer for Apple and currently in a legal dispute with the iPhone maker, has put itself up for sale.

Shares in the company more than halved in April when Imagination said that Apple was to stop using its technology.

Apple used Imagination's technology and intellectual property for years. 

The Hertfordshire firm, which designs the graphics processors used in smartphones and other electronic devices, suffered a major blow this year when apple, its largest customer,pulled the plug on its chip supply deal with effect from 2019. Apple accounts for half Imagination’s revenues, and its shares slumped 70% on the day of the news.

Imagination said on Thursday that “over the last few weeks it has received interest from a number of parties for a potential acquisition of the whole group. 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.”

It formed the basis of Graphics Processor Units (GPUs) in Apple's iPhones, tablets, iPods, TVs and watches.

"Over the last few weeks, we have received interest from a number of parties for a potential acquisition of the whole group. The board has decided to initiate a formal sale process and is engaged in preliminary discussions with potential bidders," Imagination said in a statement late on Thursday.

The company's stock surged over 20 per cent after it issued the statement, media reported on Friday.

Apple announced in April that it would cut its reliance on Imagination within two years.