Ultimate alchemy: Qualcomm to buy NXP for $37 billion

Ultimate alchemy: Qualcomm to buy NXP for $37 billion

Alchemists of old understood the transformative processes of combining matter, elements, and exiliars – all in the quest to change ordinary metals into gold. Today, we call these tech magicians semiconductor makers, the transformers of the modern age.

Now, having transformed the human world by wiring and connecting us all together, the semiconductor industry itself is undergoing a great transformation of its own- highlighted by the latest report that Qualcomm is nearing a $37 billion deal to buy NXP Semiconductors.

The deal is the latest combination in a complex, global web of company and product line mergers, acquisitions and divestitures that’s been underway for more than a year. In the case of Qualcomm, the U.S. company seeks to expand the reach of its chips from phones to cars.

According to published reports the NXP acquisition would make San Diego-based Qualcomm, which supplies Android smartphone makers and Apple Inc, a bigger supplier to the automotive industry.

Like many companies, Qualcomm has been grappling with slowing smartphone sales and stiff competition from Chinese and Taiwanese rivals.

The deal represents something of a tipping point for the industry as Qualcomm has, until now, been sitting out this epic transformation and consolidation, typified byrmega-deals like the Avago buyout of Broadcom for $37 billion last year.ecent

The question is, can the industry continue to mint magic and turn silicon into gold in the years ahead?


Report: Qualcomm close to deal to buy NXP Semiconductors – Business Insider

Qualcomm is nearing a deal to buy NXP Semiconductors, according to Alex Sherman and Ian King at Bloomberg.

The tech giant is in the final stages of negotiations to buy the company in what could be an all-cash deal for $110 to $120 per share, the report said.

NXP’s share price jumped a little more than 3% on the news, from around $100.70 to $104 per share. Qualcomm jumped around 2.5%, to $67.46. The share price reaction suggests that both NXP’s shareholders — and, critically, Qualcomm’s investors — like the idea of a deal.

Qualcomm now has a market cap of around $99 billion, while NXP has a market cap of around $36 billion. The deal would be the largest in the history of the semiconductor industry, according to Bloomberg. It would also be one of the biggest deals this year, ahead of Softbank’s deal for ARM and Abbott Laboratories’ deal for St Jude Medical.


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