Sun, Oct 02, 2016 - Page 16 News List

NXP said to hire Qatalyst amid acquisition interest

Bloomberg

NXP Semiconductors NV hired boutique investment bank Qatalyst Partners amid acquisition interest from Qualcomm Inc, people with knowledge of the matter said.

Qatalyst will begin a formal sales process to find a buyer for NXP, said the people, asking not to be identified because the information is private.

In addition to Qualcomm, Avago Technologies Ltd, Intel Corp and Samsung Electronics Co are the most likely to be interested, one of the people said.

NXP might also hire a coadviser, another person said.

While NXP has grown quickly via its purchase of Freescale Semiconductor at the end of last year, it is still relatively small compared with companies such as Qualcomm, Intel and the more rapidly expanding Broadcom Ltd. NXP is projected to have more than US$9 billion in revenue this year.

NXP chief executive officer Rich Clemmer and the company’s board, who successfully brought the company back to the public markets in 2010, might be tempted by an offer to become part of a bigger company as industrywide costs of production rise and customer lists shrink.

NXP is one of several firms that San Diego, California-based Qualcomm, the largest maker of chips for mobile phones, has been studying as it determines if and how to put its offshore cash to use, people familiar with the matter said on Friday.

Qualcomm is also considering a handful of other large acquisitions, both domestic and international targets, the people said.

Talks between NXP and Qualcomm are still preliminary, people with knowledge of the matter said.

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