Qualcomm, Inc. (NASDAQ:QCOM) is planning to acquire NXP Semiconductors NV (NASDAQ:NXPI).
The deal will have a subsidiary of QCOM making a tender offer of $110 per share for NXPI. This will have the total value of the deal sitting at $47 billion. It includes all issued and outstanding NXPI stock and the payment will be made in cash.
QCOM is planning to use cash on hand and new debt to fund the deal with NXP Semiconductors NV. There are no financing conditions that need to be met before the deal can be completed. However, it will need approval from NXPI shareholders and regulators.
The Board of Directors for both Qualcomm, Inc. and NXP Semiconductors NV have both unanimously approved the deal. QCOM said that it expects the combined company to have over $30 million in yearly revenue, if the deal is completed.
“United in a common strategy, the complementary nature of our technologies and the scale of our portfolios will give us the ability to drive an accelerated level of innovation and value for the whole ecosystem,” Rick Clemmer, CEO of NXP Semiconductors NV, said in a statement.
Financial advisors for QCOM are Goldman Sachs & Co., Evercore and Centerview Partners LLC. Legal advisors to Qualcomm, Inc. for the deal are Paul, Weiss, Rifkind, Wharton & Garrison LLP; Cravath, Swaine & Moore LLP and Allen & Overy LLP.
NXP Semiconductors NV is getting financial advice from Qatalyst Partners, Barclays and Credit Suisse. Its legal advisors are Skadden, Arps, Slate, Meagher & Flom LLP and De Brauw Blackstone Westbroek.
The deal between the two companies is expected to close by the end of 2017.
QCOM stock was up 4% and NXPI stock was up 1% as of Thursday morning.
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