Qualcomm’s purchase of NXP could slip into 2018
NXP CEO Richard Clemmer said concerned parties were working to close the deal in 2017 but that the timing was now tight. The closing of the deal could slip into 2018, he said.
NXP’s sales and the profit in the third quarter were down on the same period a year before. Revenue was down 3 percent while the net profit was down from $174 million.
The annual comparison was impacted by NXP’s divestment of the standard products business during the first quarter of 2017 to form Nexperia. (see Nexperia formally launched: focuses on discretes, logic and MOSFETs).
The other divisions of NXP showed generally good results. Automotive group Q3 revenue was $948 million, up 11 percent year-on-year. Secure Connected Devices group Q3 revenue was $713 million, up 20 percent year-on-year. The Secure Interface and Infrastructure group Q3 revenues was $488 million, up 3 percent year on year.
NXP said it continues to recommend the $110 per share offer made by Qualcomm back in October 2016 (see Qualcomm, NXP discuss merger). “We are working diligently with Qualcomm and the various regulators towards a successful close this year. However, at this point the timetable is very tight and there is a possibility for the closing to occur in early 2018,” said Clemmer, CEO of NXP, in a statement.
NXP did not provide forward guidance or host an analysts’ conference call because of the impending acquisition.
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