Qualcomm to acquire NXP in USD 47 billion cash deal

US-based chipset company Qualcomm Incorporated will acquire the Netherlands-based NXP Semiconductors for USD 47 billion in an all cash deal.
In a joint statement both the companies announced "definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP. Pursuant to the agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding common shares of NXP for USD 110 per share in cash, representing a total enterprise value of approximately USD 47 billion."
Both companies have strong presence in India with research and development centres.

The transaction is expected to close by the end of calendar 2017 and is subject to receipt of regulatory approvals.
Qualcomm expects to generate USD 500 million of annualized run-rate cost synergies within two years after the transaction closes, it added.
While Qualcomm is electronic chipset firm in mobile communications space, NXP specialises in high-performance, mixed-signal semiconductor electronics, with innovative products and solutions and leadership positions in automotive, broad-based microcontrollers, secure identification, network processing etc.

NXP has a broad customer base, serving more than 25,000 customers through its direct sales channel and global network of distribution channel partners, the statement said.

"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.
The combined company is expected to have annual revenues of more than USD 30 billion, serviceable addressable markets of USD 138 billion in 2020 and leadership positions across mobile, automotive, IoT, security, RF (contactless smart card etc) and networking.