Qualcomm reaches deal to buy Dutch chipmaker in $44 billion deal

Qualcomm reaches deal to buy Dutch chipmaker in $44 billion deal
Posted at 2:01 PM, Feb 20, 2018
and last updated 2018-02-20 17:05:27-05

SAN DIEGO -- Qualcomm announced Tuesday that the company reached an agreement to purchase Dutch chipmaker NXP Semiconductors.

One of Qualcomm’s subsidiaries will pay $127.50 per share for all outstanding shares of the company.

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

RELATED: Qualcomm rejects Broadcom's 'best and final' offer

"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."

The $44 billion deal comes one week after leaders of Qualcomm met with Broadcom executives to discuss a $146 billion buyout.

RELATED: Broadcom submits 'best and final' offer in attempt to acquire San Diego-based Qualcomm

Qualcomm has rejected buyout offers from Broadcom twice. Broadcom said during the last talks between the two companies that this was its “best and last offer” to purchase Qualcomm.

Officials with Qualcomm cited low per-share price and lack of assurance from Broadcom that it would do everything it could to ensure the deal would pass regulatory scrutiny.