CSR PLC (ADR) (NASDAQ:CSRE) (LON:CSR) has officially rejected an offer apparently made by U.S. competitor Microchip Technology Inc. (NASDAQ:MCHP). The U.K.-based chip maker said Microchip would have to pay more to add its radio technology to its Internet of Things offerings.

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CSR rejects Microchip’s price

In a statement, CSR said its board of directors rejected the proposed price and is now considering options. The company issued that statement after a report from the Financial Times stated that CSR was speaking with a possible suitor about a proposal that could place an approximately $3 billion value on the company. It’s unclear exactly how much Microchip may have offered for the chip maker, however.

According to Reuters, CEO Joep van Beurden has been shifting the company’s focus to areas that are more profitable, like automotive, audio and music, and away from less profitable products like digital cameras. He sold off the company’s mobile phone technology division, as it was losing share to a number of rivals, including Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930) and QUALCOMM, Inc. (NASDAQ:QCOM).

Analysts from multiple firms have said that the Internet of Things is the next battleground in the technology industry, so a company like CSR that could provide a leg up in that part of the industry would be a good buy for any company, particularly bigger chip makers that have fewer opportunities to grow in the smartphone industry.

CSR and the Internet of Things

The company improved upon Bluetooth technology which connects multiple devices inside the home. As a result, CSR has become an attractive takeover target for its position in the Internet of Things market. The technology enables users to use their smartphone to control their heating and lighting. The chips made by CSR are also used in devices like speaker docks and the headphones made by Beats Electronics, which is now owned by Apple Inc. (NASDAQ:AAPL).

Peel Hunt analyst Alex Jarvis has said that CSR is one of her top picks as a takeover target. She said the reason for that is because big vendors are looking for profit centers that are outside the handset segment of the industry. In addition, she highlighted the Internet Things and its importance in the technology market going forward.