Qualcomm Acquires NXP Semiconductors

Qualcomm Acquires NXP Semiconductors

The two parties agreed to an all-cash transaction that will be valued at around $40 billion, marking the largest acquisition in the semiconductor industry.

Qualcomm Inc. and NXP Semiconductors N.V. have reportedly reached a deal in which Qualcomm will pay $110 a share for the Netherlands-based automotive semiconductor company, according to published reports.

The two parties agreed to an all-cash transaction that will be valued at around $47 billion, marking the largest acquisition in the semiconductor industry. The specifics of the deal are currently being worked out.

Wall Street appears positive on a deal, with Mizuho analyst Vijay Rakesh recently saying it makes strategic and financial sense since Qualcomm “dominates” automotive telematics and NXP “will give it in-cockpit market share, powertrain, safety, and an automotive processor portfolio from Freescale that creates the first end-to-end semiconductor auto supplier of the future,” according to Investopedia.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish