UK chip maker Imagination bought for £550m by China-backed tech firm

Shares in Imagination Technologies climb 40% after sale to private equity firm Canyon Bridge

Shares in Imagination Technologies have jumped more than 40% after the UK chipmaker announced a takeover by a China-backed private equity firm that was blocked by Donald Trump from buying a US rival over national security concerns.

Imagination has agreed to a 182p-a-share takeover by Canyon Bridge, which is based in Palo Alto in California and backed by state-owned Chinese fund Yitai Capital. The deal values the Hertfordshire-based company at 550m; at its peak in 2012, Imagination had a stock market value of nearly 2bn.