NXP Semiconductors Announces Agreement To Divest RF Power To JAC Capital

(RTTNews) - NXP Semiconductors N.V. (NXPI) announced an agreement that will facilitate the sale of its RF Power business to Jianguang Asset Management Co. Ltd., or JAC Capital, a subsidiary of JIC Capital which is a state-owned investment company. JAC Capital will pay $1.8 billion for the RF Power business.

NXP anticipates the sale to be dilutive to earnings on a stand-alone basis in the fourth quarter 2015 and 2016. The company said the proceeds will be used to partly fund the previously announced acquisition of Freescale Semiconductor, Ltd.

NXP said the entire RF Power business and approximately 2,000 employees in the RF Power business, including its entire management team, are to be transferred to an independent company incorporated in the Netherlands, which will be 100% acquired by JAC Capital. All relevant patents and intellectual property associated with the RF Power business will be transferred in the sale, as well the NXP back-end manufacturing operation in the Philippines.