Qualcomm agrees to buy British chip maker CSR for $2.5 billion

Qualcomm Inc. agreed to buy British chip maker CSR for $2.5 billion to expand in technology for connected appliances.

San Diego-based Qualcomm, the biggest maker of mobile-phone chips, will pay about 37% more than CSR’s closing price Tuesday.

Qualcomm has been building up its business for the so-called Internet of things, and the CSR acquisition is a sign that the semiconductor industry is becoming more focused on making chips for devices such as connected cars and thermostats that can be controlled from a mobile phone, Lee Simpson, an analyst for Jefferies, said in a note to investors.

“Clearly they have gone down the ‘buy’ rather than ‘make’ route,” Simpson said.

In July, Qualcomm bought Wilocity, which makes Wi-Fi products that can be used in home Internet routers and appliances that connect to the Web. Qualcomm has also developed the AllJoyn platform, an open-source project that helps connected devices work together.

CSR, a pioneer in Bluetooth wireless technology, is benefiting as more gadgets connect to one another to exchange information. Its technology has made it an attractive target as chip makers rush to take advantage of technology that will connect cities, homes and appliances. That market for the Internet of things may rise to $7.1 trillion by 2020 from $1.9 trillion in 2013, researcher IDC has said.