The British technology company behind rapper Dr Dre’s headphone range has been snapped up by US chip giant Qualcomm in a £1.6billion deal.

CSR, short for Cambridge Silicon Radio, is a pioneer in bluetooth technology that has seen its popularity balloon as more household electronic items and gadgets become connected.

Its technology is used in mobile phones around the world, as well as in hands-free car mobile systems and the bestselling headphones made by Dr Dre’s Beats brand.

Popular: CSR's technology is used in the bestselling headphones made by Dr Dre's Beats brand

Qualcomm is the world’s biggest computer chip-maker, with its kit found in almost every smartphone.

It has offered 900p a share for the London-listed CSR, which agreed to the deal days after batting away a lower offer from US firm Microchip Technology. Analysts said rival suitors could spark a bidding war.

Shares yesterday rocketed by a third to close 197p higher at 855.5p. Shares have now climbed almost 60pc in the past 12 months.

Qualcomm has 400 employees in the UK, including a hub in Cambridge, and it is expected to maintain CSR’s base in the city.

However, full integration plans and any potential job cuts at CSR, which employs 2,130 people in 11 countries, will be finalised in the months before the deal closes.