Freescale and NXP Announce Multibillion-Dollar Merger

March 2, 2015

Freescale Semiconductor and NXP Semiconductors announced a $40 billion merger to be finalized by the second half of 2015.

Iliza Sokol

A definitive agreement reached between NXP Semiconductors and Freescale Semiconductor will merge the two companies—an enterprise valued at over $40 billion. The newly combined company will look to become a leader in automotive semiconductor solutions and general-purpose microcontroller (MCU) solutions, capitalizing on opportunities created by the demand for security, connectivity, and processing.

The transaction was unanimously approved by the boards of directors for both companies, and is now subject to regulatory approvals and customary closing conditions. NXP will fund the transaction with $1.0 billion from its balance sheet, $1.0 billion of new debt, and approximately 115 million NXP ordinary shares. Following the transaction, Freescale shareholders will own approximately 32% of the joint company. The deal is expected to close in the second half of 2015.

About the Author

Iliza Sokol | Associate Digital Editor

Iliza joined the Penton Media group in 2013 after graduating from the Fashion Institute of Technology with a BS in Advertising and Marketing Communications. Prior to joining the staff, she worked at NYLON Magazine and a ghostwriting firm based in New York.