Visitors Now:
Total Visits:
Total Stories:
Profile image
By ETF Daily News (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

QUALCOMM Finalizes Deal to Buy NXP Semiconductor for $110 Per Share

Thursday, October 27, 2016 4:17
% of readers think this story is Fact. Add your two cents.

(Before It's News)

semiconductor-microchipIn a long-rumored move, QUALCOMM, Inc. (NASDAQ:QCOM) will buy Netherlands-based NXP Semiconductors NV (NASDAQ:NXPI) for $47 billion in a semiconductor sector mega merger.

QCOM’s $110 per-share tender offer represents an 11% premium over NXPI’s Wednesday closing price of $98.66.

The Wall Street Journal had first reported the move back in September, and the companies spent the last month or so finalizing details of the deal. From the press release:

Pursuant to the agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all of the issued and outstanding common shares of NXP for $110.00 per share in cash, representing a total enterprise value of approximately $47 billion.

The companies expect the transaction, which will create a combined company with annual revenues totaling more than $30 billion, to be completed by the end of 2017. QCOM sees some immediate benefits from the move:

Qualcomm expects the transaction to be significantly accretive to non-GAAP EPS immediately upon close. Qualcomm expects to generate $500 million of annualized run-rate cost synergies within two years after the transaction closes. The transaction utilizes Qualcomm’s strong balance sheet and will be efficiently financed with offshore cash and new debt. The transaction structure allows tax efficient use of offshore cash flow and enables Qualcomm to reduce leverage rapidly.

QUALCOMM shares rose $1.80 (+2.64%) to $70.00 in premarket trading Thursday, while NXP shares were up $2.74 (+2.78%) to $101.40.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.