NEW YORK (AP) - Smartphone chipmaker Qualcomm is buying NXP Semiconductors N.V. in a deal valued at approximately $38 billion.
NXP shareholders will receive $110 per share for each share they own. That's an 11.5 percent premium to the company's Wednesday closing price of $98.66. The companies put the deal's total value at about $47 billion.
The combined company is expected to have annual revenues of more than $30 billion.
The boards of both companies approved the transaction, which is targeted to close by the end of 2017.
Shares of Qualcomm Inc., which is based in San Diego, climbed more than 2 percent before the opening bell Thursday. Shares of NXP, based in Eindhoven, Netherlands, gained more than 2 percent.
Copyright 2016 The Associated Press.