Qualcomm Inc has agreed to buy NXP Semiconductors for $47 billion, including debt, furthering its goal to expand the reach of its chips from smartphones to cars.
Chipmaker Qualcomm Inc has agreed to buy NXP Semiconductors for $47 billion, including debt. If successful the deal would transform Qualcomm into one of the largest suppliers of chips in the fast-growing automotive industry market.
According to a spokesperson for the company, Qualcomm is willing to pay $110 per share, 11.5% higher than NXP Semiconductor’s closing price on Wednesday. The company intends to fund the transaction with offshore cash in a tax-efficient manner to rapidly reduce leverage.
The deal is expected to significantly add to adjusted earnings immediately upon its close and generate $500 million in cost savings per year with two years of closing the deal. Qualcomm Inc and NXP Semiconductors has both stated that the combined company which would emerge from the their deal is expected to have an annual revenue of more than $30 billion.