Chinese-backed private equity investment company Canyon Bridge will invest EUR550 million, which is about USD743.2 million, to acquire Imagination, Apple's former GPU supplier.
Imagination had been Apple's supplier for seven years since 2010. In April 2017, Apple ended their cooperation relationship and the share price of Imagination dropped by half overnight. At that time, Apple confirmed that they were self-developing a GPU, which is the A11 Bionic chip used on the latest iPhone 8 and iPhone X. This chip is specially designed for intensive graphic operations such as AI and AR and it builds on the competitive advantage of Apple.
In June 2017, Imagination revealed that they were seeking a buyer. At the same time, the company has been taking legal actions to discuss if Apple can develop their own GPU without infringing patented technologies of Imagination.
In Imagination's statement to investors, the company said there is still dispute between the company and Apple. Meanwhile, Apple does not have any proof to indicate that they will no longer use Imagination's technologies or not infringe Imagination's patents.
Canyon Bridge is headquartered in Silicon Valley and it is controlled by China's Yitai Capital. The company focuses on investments in technology companies. According to Canyon Bridge, Imagination will maintain independent operations after the acquisition.