Qualcomm Inc. announced on Tuesday that its subsidiary Qualcomm River Holdings BV reached an agreement with NXP Semiconductors NV to raise its offer price per share to $127.50 from $110. The amended agreement also lowers the minimum tender condition from 80% of NXP’s outstanding shares to 70%. Qualcomm added that it reached a deal with nine of the Dutch company's stockholders who collectively own more than 28% shares. NXP previously resisted the sale, seeking a better price.
The San Diego-based chipmaker said the revised price reflects NXP's recent performance, strong market dynamics, and expected operating cost savings. "The acquisition of NXP will enable us to accelerate our growth strategy. 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 IoT and our high confidence in management’s ability to execute upon the synergy opportunities," said Tom Horton, presiding director of Qualcomm's board.
