According to various sources, Qualcomm is moving forward to acquire NXP Semiconductors in a huge $30 Billion plus deal. Qualcomm is shelling out aprox $110 per share and while nothing has been officially confirmed, rumors stipulate that the deal could be announced as early as the next week.
Rumors of a Qualcomm-NXP deal had been floating around since September. If it actually goes through though, it will bring about further consolidation to the Semiconducter space which has been witness to a fair amount of big M&As lately.
One of the recent, notable example of the same came in form of ARM’s acquisition by SoftBank, in a deal valued at $32 billion. NXP Semiconductors in its present form is the result of consolidation as well, and it acquired its present girth after merging with Freescale Semiconductor in a deal worth almost $40 billion last year.
Apparently, NXP asked Qualcomm for a $120 price per share, in order to consider an acquisition. Eventually, the companies agreed to settle upon $110 per share. Considering the per share price and NXP’s market cap, the deal may have a value somewhere between $35-$37 Billion. That would make it overtake Softbank’s $32 Billion acquisition of ARM as well.
The deal would probably be a good strategic maneuverer from a business standpoint. Qualcomm already has a well entrenched position in mobile. By partnering with NXP, it will also get a boost in automotive and identification niches. And who knows what new products the company might come up with then.