UPDATED 00:33 EDT / OCTOBER 28 2016

NEWS

Qualcomm to acquire rival NXP for $47 billion in all-cash deal

Qualcomm Technologies Inc. has announced plans to acquire rival firm NXP Semiconductors N.V. in an all-cash deal for $110 a share, totaling $47 billion, the company announced Thursday.

Founded in 2006 and based in the Netherlands, NXP is best known for co-inventing near-field communications, the technology that enables wireless payment services such as Apple Pay. The company’s line of controllers is nearly ubiquitous in high-end phones, including the iPhone 6, 6S and 7, along with Android handsets such as the Samsung Electronic Co. Ltd.’s Galaxy S7. Along with producing chips for Internet of Things devices, NXP is also the largest manufacturer of automotive electronics via Freescale Semiconductor Inc., a company it merged with in December 2015.

“With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry,” Qualcomm Chief Executive Officer Steve Mollenkopf said in a statement. “The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale.”

The move is being touted as a push by Qualcomm to diversify its chip range as growth in demand for smartphones slows.

“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, NXP CEO Rick Clemmer noted. “Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security.”

The deal is expected to close by the end of 2017 and is subject to regulatory approvals and other closing conditions.

Image credit: Sbmeirow/Wikimedia Commons/CC by SA 3.0

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