Qualcomm Confirms $ 39 Billion NXP Acquisition

Qualcomm logoThe group Qualcomm, known in the smartphone world especially for its SnapDragon SoCs and modems but also specialist in mobile and wireless technologies, is embarking on one of the biggest acquisitions ever attempted in the sector by announcing the takeover of the Dutch NXP Semiconductors for $ 39 billion (for a total operation of $ 47 billion).

The San Diego group made an offer to $ 110 per share in cash (i.e. 34% premium compared to the price), and it hopes by this operation to strengthen rapidly in the segment of automotive electronics and infotainment (vehicle console services), sectors in full expansion in which Qualcomm is already interested in certain aspects but which it will be able to take full advantage of thanks to NXP's know-how in this area.

Qualcomm highlights the complementarity of the activities of the two groups to justify the acquisition of NXP, and the values ​​of innovation carried by solid investments in R&D and rigorous business management practices.

NXP logo proThe wider access to the automotive market should allow Qualcomm to position itself upstream of the future market of connected and autonomous vehicles which will be marketed from 2020.

These segments will constitute solid outlets to sell its components, while the smartphone market is reaching a saturation point which will make it difficult to grow in the high-end (most lucrative) segments. NXP is also a

The group will also be able to count on the production plants of Freescale, which NXP had purchased in 2015, and at several test sites for NXP components. To see what Qualcomm, a company without factories (fabless), which designs its components but has them manufactured by third-party founders to avoid having to manage expensive production sites, plans to make use of this resource.

The announcement of the buyout is in any case rather well received by the markets, the price of Qualcomm gaining 1.8% and that of NXP 2%, the acquisition being anticipated and after all quite logical in view of industry developments .