Qualcomm reaches agreement to purchase Dutch chipmaker, NXP Semi - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Qualcomm reaches agreement to purchase Dutch chipmaker, NXP Semiconductors

Posted: Updated:

SAN DIEGO (AP) - Qualcomm announced Tuesday that it has reached an agreement with NXP Semiconductors to purchase the Dutch chipmaker.

One of the San Diego company's subsidiaries will pay $127.50 per share for all outstanding shares of NXP, up from its previous offer of $110. It received binding agreements from nine NXP shareholders who together own more than 28 percent of the company.

Boards from both companies agreed to the deal, which is contingent on 70 percent of NXP's shares being tendered.

The deal is valued at $44 billion, according to reports, and comes a week after Qualcomm leaders met with Broadcom executives to discuss a hostile $146 billion buyout attempt by the Singapore company.

"The acquisition of NXP will enable us to accelerate our growth strategy," said Qualcomm board member Tom Horton. "The board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders based on NXP's recent strong financial performance, the growth in key strategic areas such as auto and (the internet of things) and our high confidence in management's ability to execute upon the synergy opportunities."

Qualcomm has twice rejected buyout offers by Broadcom. Leaders from the two companies met last week to discuss the latest rejected offer, which Broadcom referred to as its "best and final offer."

Qualcomm officials cited a too-low per-share price and lack of assurance from Broadcom that it would do everything in its power to ensure the deal would pass regulatory scrutiny.

Powered by Frankly
All content © Copyright 2000 - 2019 KFMB-TV. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.