San Diego-based Qualcomm has reached an agreement to acquire Netherland based chipmaker NXP for about $110 a share in cash, according to some global media reports.
NEW DELHI: Other details are yet to be negotiated. The deal would value NXP at roughly $37 billion. Reuters also reported that a deal has been reached.
Qualcomm stock was up 1.5%, above 68, in afternoon trading on the stock market today. NXP stock, however, was down over 3%, near 101.
An acquisition of NXP would help Qualcomm diversify beyond mobile-phone chips. The deal would give Qualcomm exposure to the automotive, industrial and Internet of Things markets.
Qualcomm was among the chipmakers hurt by Samsung’s recent decision to cancel its fire-prone Galaxy Note 7 smartphone. Qualcomm gets nearly 3% of its revenue from Samsung, Pacific Crest Securities estimates.
Purchasing NXP would allow Qualcomm to become an end-to-end chip supplier to the automotive market.
The deal would create the second-largest chip company by revenue, after Intel.
News of the possible Qualcomm-NXP tie-up was first reported on Sept. 29, sending NXP shares up 17% on the day.
A spokesman for NXP said it is company policy to never comment on rumors or speculation. Qualcomm didn’t immediately return a request for comment.
Qualcomm’s two largest acquisitions to date were its $2.4 billion purchase of CSR in 2015 and $3.1 billion purchase of Atheros Communications in 2011.
Headquartered in the Netherlands, NXP makes high-performance mixed-signal processors for communications, security, automotive and industrial applications.