Qualcomm acquires NXP for $47 billion

Qualcomm has announced that its acquiring NXP Semiconductors for $47 billion in an all-cash deal. The acquisition, which will bring the two chip-making giants - Qualcomm and NXP - together, is the largest in the history of the semiconductor industry.

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.

Steve Mollenkopf, CEO of Qualcomm Incorporated 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."

He further mentioned, “By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”

According to TechCrunch, "It’s a smart move by Qualcomm to help it continue to be a key player in the chip industry, as connected vehicles with increasing amounts of onboard tech, and digital security in general, become areas where more attention and investment is focused."

NXP is a leading semiconductor solutions supplier to the automotive industry which enables secure connections and infrastructure for a smarter world. NXP also has leading positions in automotive infotainment, networking and safety systems, with solutions designed into 14 of the top 15 infotainment customers in 2016. The company has a broad customer base, serving more than 25,000 customers through its direct sales channel and a global network of distribution channel partners.

Goldman Sachs and Evercore were financial advisors to Qualcomm. With JP Morgan, Goldman is providing debt financing for the transaction.