There were rumors that Qualcomm was interested in acquiring NXP Semiconductor and the company has just made a formal announcement today. Qualcomm has confirmed that it’s going to acquire NXP for $47 billion. It’s the biggest chip acquisition the company has ever made, the deal is actually going to be the biggest semiconductor deal ever made, so it’s history in the making.
NXP makes more than just smartphone chips. Its products include NFC payment chips and it was once the supplier of the iPhone’s motion co-processor. It already has a major stake in the Internet of Things, automotive, and security markets so Qualcomm is charting a course for its future with this acquisition.
“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,” CEO of Qualcomm Steve Mollenkopf said in a statement.
Once the acquisition goes through, the combined company is going to have annual revenues of more than $30 billion and access to serviceable markets of $138 billion by 2020. This deal will see a subsidiary of Qualcomm acquire all issued and outstanding shares of NXP for $110 per share in cash, valuing the deal at a staggering $47 billion.
The deal is contingent on regulatory approvals, Qualcomm expects to close the acquisition by the end of next year.