7 December 2015

NXP closes divestiture of RF Power business to JAC Capital and completes acquisition of Freescale

NXP Semiconductors N.V. of Eindhoven, The Netherlands has closed the divestiture of its RF Power business to Jianguang Asset Management Co Ltd (JAC Capital) after receiving official confirmation that JAC Capital has deposited the required funds at its bank in China to pay the purchase price. This followed clearance from the US Committee on Foreign Investment in the United States (CFIUS) on 24 November, and subsequent regulatory approval.

The cash proceeds of the sale will be received later in December following the required regulatory filings for cross-border transfers of funds from China. NXP has obtained bridge financing until the funds are received.

NXP’s divestiture of its RF Power business was a condition for its $11.8bn acquisition of Freescale Semiconductor Ltd of Austin, TX, USA (announced in March), which has hence now been completed, following prior approval by the US Federal Trade Commission (FTC), the European Commission (EC), the Korea Fair Trade Commission (KFTC) and the Japan Fair Trade Commission (JFTC). The cash and stock deal - valued at $16.7bn, including Freescale's net debt of $4.9bn - creates a mixed-signal semiconductor firm with combined revenue of over $10bn, claiming market leadership in automotive semiconductor solutions and in general-purpose microcontroller (MCU) products.

The Freescale transaction is expected to be accretive to NXP’s non-GAAP earnings in 2016. NXP expects cost savings of $200m in 2016, with a path to $500m of annual cost synergies.

See related items:

NXP's sale of RF Power business to JAC Capital cleared by CFIUS, triggering FTC approval of NXP's acquisition of Freescale

European Commission approves NXP's acquisition of Freescale, conditional upon NXP divesting RF power business

NXP and Freescale shareholders' meetings approve merger

NXP to sell RF Power business to China's JAC Capital for $1.8bn

NXP to acquire Freescale for $11.8bn

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