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Qualcomm To Acquire NXP

Qualcomm will acquire NXP, a manufacturer of mixed-signal semiconductor electronics, in a deal valued at approximately $47 billion.

NXP makes semiconductor electronics for automotive, broad-based microcontrollers, secure identification, network processing and RF power industries, with more than 25,000 customers through its direct-sales channel and global distribution channel partners.

“With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry,” said Steve Mollenkopf, CEO of Qualcomm. “The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale. By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”

The combined company is expected to have annual revenues of more than $30 billion, Qualcomm said.

The deal is intended to position Qualcomm as a leader in mobile SoCs, 3G/4G modems and security; automotive infotainment, safety systems, telematics and connectivity; IoT, secure identification and mobile transactions; and network processors for wired and wireless communications and RF sub-segments, Wave-2 11ac/11ad, RF power and BTS systems.

Under the terms of the definitive agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding shares of NXP for $110 per share in cash, representing a total enterprise value of approximately $47 billion.

The deal has been unanimously approved by the boards of directors of both companies, and it’s expected to close by the end of 2017.