Ceva Inc. has announced that it will not rebid against Imagination Technologies Group plc for processor IP company MIPS Technologies Inc. Ceva announced today that it would not submit any further proposal to acquire the operating business of MIPS Technologies, Inc.

Imagination started the process in early November with a bid of $60 million to buy MIPS's operating business and certain patents while ARM would lead a consortium called Bridge Crossing that would acquire rights to the major part of the MIPS portfolio of patents as a form of legal protection. Bridge Crossing is set to pay $350 million in cash to purchase the rights to the MIPS portfolio, of which ARM will contribute $167.5 million.

Ceva bid twice against forcing Imagination to rebid up to a level of $100 million.

Gideon Wertheizer, CEO of CEVA, commented: "While CEVA's Board of Directors and management believed there was strategic merit in the combination of CEVA with MIPS, further increasing the purchase price would not meet our financial objectives. We believe it is in the best interests of our shareholders that our available cash be reserved for other potential opportunities in the future. As part of our corporate business strategy, we will continue to seek and evaluate complementary technologies and businesses that will meet our strategic and financial objectives."