The offer comprises $60 in cash and $10 in stock and stands whether Qualcomm is successful in its bid to acquire NXP.
“We would not make this offer if we were not confident that our common global customers would embrace the proposed combination,” said Hock Tan, CEO of Broadcom, in a statement.
The common global customers would appear to include Apple. Both Broadcom and Qualcomm have multiple chips in the latest iPhones but Qualcomm have been embroiled in an increasingly bitter legal battle of licensing terms. Broadcom could be providing assurance that if its unsolicited bid is successful – and it is providing a 28 percent premium over Qualcomm’s value on November 2 – then the dispute with Apple will go away.
Thomas Krause, Broadcom Chief Financial Officer, added, “Given the complementary nature of our products, we are confident that any regulatory requirements necessary to complete a combination with Qualcomm will be met in a timely manner. We look forward to engaging immediately in discussions with Qualcomm so that we can sign a definitive agreement and complete this transaction expeditiously.”
With or without the addition of NXP the combination of Broadcom and Qualcomm would create a semiconductor to rival Samsung and Intel. The combined Broadcom and Qualcomm, including NXP, will have pro forma fiscal 2017 revenues of approximately $51 billion.
Broadcom announced on November 2 that it is redomiciling from Singapore to the United States. Broadcom stated that it expects the proposed transaction would be completed within approximately 12 months after the signing of a definitive agreement to merge.
Qualcomm confirmed the receipt of the offer and said it is considering the best course of action for Qualcomm shareholders.
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