NXP Semiconductors and Freescale Semiconductor are to merge – or you could say NXP has paid $11.8bn to acquire Freescale. If you prefer merger it creates a $40bn enterprise. As NXP is paying Freescale shareholders $6.25 in cash, it looks more like an acquisition.
Either way it creates a powerful force in the automotive semiconductor market and microcontrollers. Together the companies will eye opportunities in security, connectivity and processing applications.
On the distributor front not much may change. In Europe both have Arrow Electronics, along with EBV Elektronik and Silica, two Avnet companies. In the high service sector Mouser distributes both companies while Freescale also sells through Farnell element14. NXP also has Future Electronics in its European network.
“Today’s announcement is a transformative step in our objective to become the industry leader in high performance mixed signal solutions. The combination of NXP and Freescale creates an industry powerhouse focused on the high growth opportunities in the Smarter World. We fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, which taken together will maximize value for both Freescale and NXP shareholders,” said Richard Clemmer, NXP Chief Executive Officer. Mr. Clemmer will continue to be the President and Chief Executive Officer of the merged company.
“We believe this merger, which combines two highly successful and complementary companies, will create significant value for Freescale’s and NXP’s shareholders, customers and employees. Both companies have built leadership positions and have a sharp focus on delivering superior value to customers. Our combined scale, size and global reach will position our new company to deliver sustainable above market growth. It will also serve to accelerate the strategic plans both companies have invested in, enabling us to deliver more complete solutions to customers,” said Gregg Lowe, Freescale Semiconductor President and Chief Executive Officer.


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