The rumors have been laid to rest.
Qualcomm on Thursday confirmed plans to acquire Netherlands-based NXP Semiconductors in a deal valued at approximately $47 billion.
Qualcomm said one of its subsidiaries will undertake a tender offer to purchase all of the issued and outstanding shares of NXP for $110 per share in cash. NXP’s share price as of the market close on Wednesday was $98.66.
The deal will net Qualcomm NXP’s expertise in automotive infotainment, networking and safety systems the company said, as well as its 25,000-strong customer base. Qualcomm said the deal will put it in better position to cater to an increasingly connected world.
“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,” Qualcomm CEO Steve Mollenkopf said. “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.”
Qualcomm said the deal will also bring “substantial” financial benefits, including the generation of %500 million of annualized run-rate cost synergies within two years of the transaction’s close.
The transaction is expected to close by the end of the 2017 calendar year and is subject to regulatory approvals, Qualcomm said.
