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Imagination Technologies is selling off two of its businesses as Apple dispute looms

Graphics chip manufacturer Imagination Technologies has announced it is to sell off two of its businesses as it looks to balance its books after Apple said it would stop using its chips.

Shares in the Hertfordshire-based company went into freefall last month when the US tech giant revealed that it would be drawing its agreement, which accounts for a large proportion of Imagination’s revenues, to a close by 2019.

Apple currently utilises the firm’s PowerVR graphics chip across its iPhone, iPad and Watches range, and owns an 8.2% stake in the company.

Since the announcement, the British tech firm has embarked on a wholesale review of its business in an effort to restructure and reprioritise after losing its biggest customer.

Imagination has now said that it will be putting its MIPS and Ensigma businesses up for sale as it looks for costs savings and focuses its attentions on its headline PowerVR graphics chip products.

Its disagreements with Apple do not end there, however, with the firm revealing that it has been unable to reach a satisfactory deal with the Cupertino business over alternative commercial arrangements and its royalty agreement, and so had commenced a dispute resolution procedure with the firm.

In a statement, Imagination said: “Imagination has therefore commenced the dispute resolution procedure under the licence agreement with a view to reaching an agreement through a more structured process.

“Imagination has reserved all its rights in respect of Apple’s unauthorised use of Imagination’s confidential information and Imagination’s intellectual property rights.”