UK technology firm, Imagination, is being bought for £550million by Chinese-backed investment firm, Canyon Bridge.

Imagination designs graphics chips for smartphones, and is the latest chip designer to be bought by a foreign investor.

Andrew Heath, the boss of Imagination, believes the takeover by Canyon Bridge was a “very good outcome”, noting he will ensure it “remains in the UK”.

Canyon Bridge recently raised US$1.5billion from Chinese investors, and has offices in Beijing and San Francisco.

Ray Bingham, a partner at Canyon Bridge, said: “We are investing in UK talent and expertise in order to accelerate the expansion of Imagination, particularly into Asia, where its technology platform will lead the continued globalisation of British-developed innovation.”

Imagination saw its shares halve in value when Apple said in April that it would end a deal to use its products.

Heath added to the BBC: “Imagination has made excellent progress both operationally and financially over the last 18 months until Apple’s unsubstantiated assertions and the subsequent dispute forced us to change course.

“The acquisition will ensure that Imagination – with its strong growth prospects – remains an independent IP licensing business, based in the UK, but operating around the world.”

Canyon Bridge is also seeking approval for a US$1.3billion deal to buy US chipmaker Lattice Semiconductor.

Written by Leah Alger