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Qualcomm makes $47 Billion Takeover Bid for NXP Semiconductor

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Qualcomm has announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP Semiconductor.

The takeover bid represents a total enterprise value of approximately $47 billion, and is being designed to make tax efficient use of its offshore cash pile.

"With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry. 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," 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.

Qualcomm expects to generate $500 million of annualized run-rate cost synergies within two years after the transaction closes.

Transaction Details

Under the terms of the definitive agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding shares of NXP for $110.00 per share in cash.

The tender offer is not subject to any financing condition. The transaction is expected to close by the end of calendar 2017 and is subject to receipt of regulatory approvals in various jurisdictions and other closing conditions.

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