Qualcomm agrees to acquire semiconductor biz NXP for $47bn

Chip designer chases self-driving car market as smartphone sales slow

Chip designer Qualcomm has agreed to purchase Dutch rival NXP Semiconductors for $47bn.

As rumoured, the San Diego-based business and its Eindhoven-based target announced on Thursday that they had come to a definitive agreement to see Qualcomm acquire NXP in an all-cash deal worth $47bn, including debt.

NXP Semiconductors is the fifth-largest non-memory semiconductor supplier in the world, and the primary provider of chips for the automotive market, which Qualcomm is considered to be eyeing in expectation of growth in the self-driving car market and a chilling mobile market to boot.

The acquisition dwarfs that of chip designer and supplier Avago, which bought chip designer Broadcom in a cash-and-stock deal worth $37bn, last year – shortly after NXP had itself acquired Freescale in the consolidation-friendly sector.

Qualcomm will acquire all of the issued and outstanding common shares of NXP for $110.00 per share. Qualcomm intends to fund the transaction with cash on hand and new debt. ®

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