As you may have noticed, the semiconductor industry has been undergoing more and more acquisitions in the past two years – Intel acquired Altera for $16.7 billion, Avago acquired Broadcom for $37 billion, and Western Digital also acquired Sandisk for billions. Qualcomm has just announced its plan to acquire NXP to enhance its global leadership in integrated semiconductor solutions.
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 $110.00 per share in cash, representing a total enterprise value of approximately $47 billion.
With an annual revenue of $6.1 billion for 2015, NXP is a leader in high-performance, mixed-signal semiconductor electronics. The NFC chip that powers iPhone comes from 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. The transaction is expected to close by the end of 2017.