Qualcomm announced that it will be acquiring Netherlands-based NXP Semiconductor for approximately $39 billion in an all-cash deal to tap growth opportunities of the Internet-of-Things(IoT).
Qualcomm is the largest maker of smartphone chips, while NXP serves the auto industry and also has leading positions in automotive infotainment, networking and safety systems.
NXP is a leader in high-performance, mixed-signal semiconductor electronics, with innovative products and solutions and leadership positions in automotive, broad-based microcontrollers, secure identification, network processing and RF power.
“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.” said Steve Mollenkopf, CEO of Qualcomm.
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 combination of Qualcomm and NXP will bring together all technologies required to realize our vision of secure connections for the smarter world, combining advanced computing and ubiquitous connectivity with security and high performance mixed-signal solutions including microcontrollers." said Rick Clemmer, NXP Chief Executive Officer.
