Qualcomm doubles down on IoT push with $47bn NXP buy

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Qualcomm is acquiring semiconductor rival NXP in a deal worth $47 billion as it looks to expand further into automotive, IoT, security and networking connectivity.

The deal, which is expected to close by the end of next year and is subject to regulatory approval, values NXP at $110 per share and will be paid for in cash.

Qualcomm said the combined company would create a "leader" in mobile system on chips, 3G and LTE modems and security, as well as strengthen its IoT offering. The company said the takeover would result in it leading in secure identification, mobile transactions and connectivity systems within the IoT.

It said it was also attracted by NXP's work in the automotive industry, where it has helped to build infotainment, security and networking systems.

Steve Mollenkopf, CEO of Qualcomm Incorporated, said: “With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry.  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.

“By joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”

Rick Clemmer, NXP Chief Executive Officer, added: “The combination of Qualcomm and NXP will bring together all technologies required to realize our vision of secure connections for the smarter world, combining advanced computing and ubiquitous connectivity with security and high performance mixed-signal solutions including microcontrollers.

"Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security."

Last year, Qualcomm said it wanted to move away from powering high-end smartphones and concentrate on the Internet of Things and mass-market connectivity.

Last week, the chipset maker announced it would begin shipping its 5G modem from 2017.