Qualcomm to Buy NXP Semiconductors in $47 Billion Deal

https://www.bloomberg.com/news/arti...buy-nxp-semiconductors-for-47-billion-in-cash

Qualcomm to Buy NXP Semiconductors in $47 Billion Deal

Chief Executive Officer Steve Mollenkopf is betting the deal, the largest in the chip industry’s history, will accelerate his company’s entry into the burgeoning market for electronics in cars.
“Automotive and industrial are Internet of Things verticals that we see as more profitable for semiconductors, and this is precisely the exposure that Qualcomm would gain with an NXP deal,” Cowen & Co. analyst Timothy Arcuri wrote in a note. “Qualcomm could become the dominant player in connected industrial and automotive applications.”

By buying NXP, which started off life as Koninklijke Philips NV’s chip unit, Qualcomm is taking on the risk of merging with a company that’s in the process of integrating its own acquisition of Freescale Semiconductor Ltd. That $16 billion transaction was completed in December. NXP owns factories and produces some of its own chips -- something Qualcomm has avoided by outsourcing its manufacturing -- and has about 44,000 employees, compared with about 33,000 for Qualcomm.