je.st
news
NXP, Freescale Semiconductor agree merger
2015-03-02 08:06:00| Telecompaper Headlines
(Telecompaper) NXP Semiconductors and Freescale Semiconductor have agreed a merger creating a new chipmaker with over USD 10 billion in annual sales. The new company will be market leader in automotive semiconductors and general purpose microcontroller products, while also holding a strong portfolio in growth areas such as security, connectivity and processing. Synergies from the merger are expected to lead to cost savings of USD 200 million in the first year and USD 500 million by completion of the integration. Under the terms of the agreement, Freescale shareholders will receive USD 6.25 in cash and 0.3521 of a NXP ordinary share for each Freescale common share held at the close of the transaction. This price values Freescale at USD 11.8 billion, based on NXP's most recent share price, and and a total enterprise value of USD 16.7 billion including Freescale's net debt. Subject to regulatory and shareholder approval, the transaction is expected to close in the second half of 2015. NXP will fund the deal with USD 1.0 billion of cash on hand, USD 1.0 billion of new debt and 115 million NXP shares. After the takeover, Freescale shareholders will own 32 percent of the combined company.
Tags: agree
merger
semiconductor
freescale
Category:Telecommunications
Latest from this category |
All news |
||
|
|||