Qualcomm, Inc. (NASDAQ:QCOM) recently announced plans to acquire chip designer company CSR plc (LON:CSR) for a substantial amount of money. The latter is a British company that specializes in making chips and Bluetooth products. The firm also puts focus on four specific markets: auto, consumer, music, and voice. Qualcomm hopes to use CSR to expand the Internet of Things (IoT) and invest more into auto infotainment.

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Both companies are growing fast. One Wednesday morning, Qualcomm claimed it was willing to pay $2.5 billion (or £1.6  billion in British currency).

The untapped power of CSR

CSR creates a variety of software programs and chips for mobile devices. Many of their products use location technology from satellite networks as well as software platforms which combine multiple wireless technologies including Wi-Fi, Bluetooth, GPS, and FM. CSR also designs Bluetooth chips and technology that runs on low energy to connect low powered devices. Qualcomm beat out offer from rival Microchip. The latter company’s bid was rejected late last summer because it was too low.

CSR will likely Qualcomm, Inc. (NASDAQ:QCOM) offer more connectivity. Steve Mollenkopf (chief executive officer for Qualcomm) added, “including business areas such as portable audio, automotive and wearable devices. Combining CSR’s highly advanced offering of connectivity technologies with a strong track record of success in these areas will unlock new opportunities for growth.”

Qualcomm remains in the lead

Qualcomm, Inc. (NASDAQ:QCOM) remains the number one chip maker in the world and this acquisition will help the company cement that position. There is still a chance other bidders may jump in the game. Analyst Robert Lamb explained with the firm price open, other companies may be tempted to jump in and make a bid.

This is not the first time Qualcomm boosted its portfolio. Last May, the company purchased wireless HDMI connection maker Wilocity. It also developed open-source platform AllJoyn which is used for sharing information between two devices.