Steve Mollenkopf, CEO of Qualcomm Incorporated, said in a press release, "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.”
NXP is a Dutch firm that “enables secure connections and infrastructure for a smarter world, advancing solutions that make lives easier, better and safer.” It also claims to be an innovator in other areas such as secure connected vehicles, end-to-end security and privacy, as well as smart connected solutions. Notably, NXP is currently the largest supplier of semiconductors to the automotive industry.
Rick Clemmer, CEO of NXP, stated, “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.”
Qualcomm cites the combination of leadership in "complementary" technological areas such as mobile, security, and networking, as a major reason for the acquisition. Other stated benefits include increasing Qualcomm"s consumer market scale potential and a host of financial benefits.
Qualcomm will pay $110 a share to NXP shareholders and will fund the acquisition with cash on hand and through new debt. The transaction is expected to complete by the end of 2017.