Qualcomm bags NXP for $47B

Article By : Vivek Nanda

Qualcomm will offer $110 per share and, including debt, the deal will cost close to $47 billion.

Qualcomm Inc. has announced a definitive agreement, "unanimously approved by the boards of directors of both companies," to acquire NXP. Qualcomm will commence a tender offer to acquire all of the issued and outstanding common shares of NXP for $110 per share in cash, representing a total enterprise value of approximately $47 billion.

That's bigger than the $37 billion Avago-Broadcom deal. Oh, in case you are having a who's who now crisis, here's a quick recap: Softbank is planning to buy ARM for about $32 billion, Intel acquired Altera for $16.7 billion and NXP itself agreed to take over Freescale for $11.8 billion.

"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," said Steve Mollenkopf, CEO of Qualcom. "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 realise all the benefits of the intelligently connected world."

 

Figure 1: Source: Qualcomm
 

The combined company is expected to have annual revenues of more than $30 billion, serviceable addressable markets of $138 billion in 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.

"The combination of Qualcomm and NXP will bring together all technologies required to realise our vision of secure connections for the smarter world, combining advanced computing and ubiquitous connectivity with security and high performance mixed-signal solutions including microcontrollers. Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security," said Rick Clemmer, CEO, NXP.

The combined company is expected to have annual revenues of more than $30 billion, serviceable addressable markets of $138 billion in 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.