(MENAFN- AFP) US semiconductor maker Qualcomm said Thursday it will buy Dutch rival NXP in a $47-billion megadeal to extend its footprint into the internet of things and the automobile sector.
Qualcomm said in a statement that both boards had reached unanimous agreement for it to offer NXP, a Netherlands-based company quoted on the New York Nasdaq index, a $110 per share cash deal, 11.5 percent above Wednesday's market close.
"The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale," Qualcomm CEO Steve Mollenkopf said.
He added in the statement that the deal would help Qualcomm "empower customers and consumers to realize all the benefits of the intelligently connected world."
The new combined company is forecast to have annual revenues topping $30 billion and serviceable markets of $138 billion in 2020, Qualcomm indicated, saying the megadeal was designed to position both parties for profitable growth, "while maintaining financial and operational discipline."
The US company added it forecast $500 million of annualized synergies within two years of an accord, which NXP chairman Peter Bonfield also welcomed.
Qualcomm said it would fund the transaction with cash on hand and new debt.
NXP supplies semiconductor solutions to the automotive industry.
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