MIPS announces receipt of unsolicited proposal from CEVA

USA: MIPS Technologies Inc. has received an unsolicited proposal from CEVA Inc. to acquire all of the outstanding MIPS shares, following the consummation of the proposed patent sale transaction with Bridge Crossing, LLC and the proposed recapitalization, for $75 million in cash. CEVA's proposal is subject to the approval of its board of directors and a brief period of confirmatory due diligence.

MIPS previously announced (on November 5, 2012) that Imagination Technologies Group plc would acquire the outstanding MIPS shares following the consummation of the proposed patent sale transaction with Bridge Crossing and the proposed recapitalization, for $60 million in cash.

The MIPS Technologies Board of Directors is evaluating CEVA's proposal and has not made a determination as to whether the proposal is superior to MIPS Technologies' pending transaction with Imagination Technologies. However, the MIPS Technologies Board of Directors believes the CEVA proposal could reasonably be expected to lead to a superior transaction, so it has determined to engage in discussions with CEVA. There can be no assurances that any definitive agreement or transaction will result from the CEVA proposal or MIPS Technologies' discussions with CEVA.

The MIPS Board of Directors continues to recommend the merger agreement with Imagination Technologies to its stockholders. The MIPS Board of Directors is not withdrawing its recommendation with respect to the merger agreement and the merger, or proposing to do so, and is not making any recommendation with respect to the CEVA proposal.

J.P. Morgan is acting as exclusive financial advisor to MIPS Technologies and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor.