NXP and Freescale to merge in $40 billion deal
The merger creates a high performance mixed signal semiconductor industry leader, with combined revenue of greater than $10 billion that will be the top automotive semiconductor supplier and top general purpose MCU supplier. A key strategy goal of the combined company will be to capitalize on the growing opportunities created by the accelerating demand for security, connectivity and processing, especially in smart applications.
"The combination of NXP and Freescale creates an industry powerhouse focused on the high growth opportunities in the Smarter World. We fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, which taken together will maximize value for both Freescale and NXP shareholders," said Richard Clemmer, NXP Chief Executive Officer. Mr. Clemmer will continue to be the President and Chief Executive Officer of the merged company.
"We believe this merger, which combines two highly successful and complementary companies, will create significant value for Freescale’s and NXP’s shareholders, customers and employees. Both companies have built leadership positions and have a sharp focus on delivering superior value to customers. Our combined scale, size and global reach will position our new company to deliver sustainable above market growth," said Gregg Lowe, Freescale Semiconductor President and Chief Executive Officer.
The transaction is expected to close in the second half of calendar 2015. NXP intends to fund the transaction with $1.0 billion of cash from its balance sheet, $1.0 billion of new debt and approximately 115 million NXP ordinary shares. Post transaction, Freescale shareholders will own approximately 32 percent of the combined company.
The transaction has been unanimously approved by the boards of directors of both companies and is subject to regulatory approvals in various jurisdictions and customary closing conditions, as well as the approval of NXP and Freescale shareholders.
www.nxp.com/investor
https://investors.freescale.com
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