History’s largest tech deal is to take place within a few days. Qualcomm Inc. is to acquire NXP for about $37 billion dollars.
Qualcomm vs. NXP Semiconductors
Qualcomm Inc. is an American multinational company. The telecommunications and semiconductor equipment company that designs and markets wireless telecommunications products and services. In 2015 the company’s revenue was $25.3 billion. Qualcomm’s market capital is $99 billion dollar.
On the other side, NXP Semiconductors N.V. is a company of Netherlands. It also manufactures semiconductors globally. Last year it had a revenue of $6.1 billion dollars. NXP has a market cap of around $36 billion dollars.
A Bloomberg report informs that Qualcomm is set to buy NXP Semiconductors. The report says it will be a cash purchase. The negotiation is almost at the last phase. The tech titan is paying $110 to $120 per share.
Effect in the Stock Market
Investors embraced the idea of the deal. Consequently, NXP share price leaped high a little more than 3% while Qualcomm jumped about 2.5%. Now, NXP share is rated at $100.70 to $104 and Qualcomm became $67.46 per share.
Bloomberg regarded the deal as the largest tech deal in the history of the semiconductor industry. Thusly, it becomes the mammoth merger in this year. Eventually, it surpasses the upcoming Softbank’s deal for ARM and Abbott Laboratories’ deal for Saint Jude Medical.
The prospective date for the announcement of the deal can be either 26th October or 2nd November.