Qualcomm Agrees To Acquire NXP In $47 Bld Deal - Quick Facts

(RTTNews) - Chipmaker Qualcomm Inc. (QCOM) on Thursday announced a definitive agreement to acquire NXP Semiconductors N.V. (NXPI) for $110 per share in cash, representing a total enterprise value of approximately $47 billion.

The deal is expected to be significantly accretive to non-GAAP earnings immediately upon close.

Under the terms of the definitive agreement, a Qualcomm unit will commence a tender offer for the deal. The tender offer is not subject to any financing condition.

The transaction is expected to close by the end of calendar 2017 and is subject to receipt of regulatory approvals in various jurisdictions and other closing conditions.

NXP is a high-performance, mixed-signal semiconductor electronics company. NXP has a broad customer base, serving more than 25,000 customers through its direct sales channel and global network of distribution channel partners.

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 has substantial strategic and financial benefits.

The company noted that the solid combined cash flow profile will support its current dividend and dividend growth.

Qualcomm intends to fund the transaction with cash on hand and new debt.