In accordance with the terms of the purchase agreement, Qualcomm River Holdings will pay a termination fee of $2 billion to NXP on July 26, 2018. Further, Qualcomm River Holdings has also terminated its previously announced cash tender offer to acquire all of the outstanding shares of NXP.
Qualcomm also announced that its Board of Directors authorized a stock repurchase program of $30 billion, which replaces the Company’s existing $10 billion stock repurchase authorization. Qualcomm expects to execute the majority of the stock repurchase program prior to the close of fiscal year 2019.
Steve Mollenkopf, Chief Executive Officer, Qualcomm Incorporated, commented, “Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged. We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately $5 billion for fiscal year 2018, up greater than 70 percent from fiscal year 2016. We believe our technology leadership and disciplined execution will drive significant value creation for our stockholders.”
Qualcomm continues to achieve strong growth, accelerated by its expansion and momentum in the areas of IoT, Automotive, RFFE, Compute, and Networking:
- IoT – Qualcomm continues to lead in IoT, with more than $1 billion in revenue in fiscal year 2017. The company has developed an indirect channel to reach more than 9,000 customers through third parties, including more than 25 global distributors.
- Automotive – Qualcomm is poised to deliver robust connectivity systems and leading intelligence capabilities for the connected car of tomorrow. As of July 2018, our backlog of awarded design wins is $5 billion, up from $3 billion in January 2018.
- RFFE – Qualcomm’s RFFE has secured design wins with top-tier smartphone manufacturers in addition to securing non-binding memorandums of understanding with a contract value of $2 billion with leading OEMs: Lenovo, OPPO, Vivo and Xiaomi.
- Advanced Compute – Qualcomm is redefining the connected PC experience with launches from ASUS, HP and Lenovo, based on the Qualcomm® Snapdragon™ 835 Mobile Platform.
- Networking – Qualcomm’s technology is driving the industry, leading in Home and Enterprise Wireless Networks and in Mesh Wi-Fi.
Qualcomm continues to lead in 5G and expects to see significant short- and long-term opportunities as the next wave of cellular technology dramatically transforms industries.