Graphics chip maker Imagination Technologies Group plc (LON:IMG) is offloading its Pure digital radio business to an Austrian company.
Imagination is selling the non-core business to AVenture AT GmbH for £2.6mln.
It has also granted the buyer an option to purchase one of its properties in Hertfordshire for £4.5mln.
Imagination plans to use the cash from the deal to cut debt and to focus on its core semi-conductor business.
The group, which has been talked about as a takeover target for the likes of Apple Inc (NASDAQ:AAPL), said it was also progressing the potential sale of other non-core activities.
It sold a small part of IMG Systems earlier this month.
Imagination added that its continuing operations performed in line with hopes in the first quarter of the year.
Chief executive Andrew Heath said: "With the difficulties of last year behind us, continuing operations have traded in line with expectations in the first quarter.
"The sale underlines the group's focus on its core intellectual property licensing activities."
Shares in the group fell 8.5p, or 3.5%, to 238p at lunchtime.