April 16, 2015: NXP Semiconductors N.V. and Freescale Semiconductor, Ltd have announced the merger of the two companies, combining two great portfolios of complementary products and technologies into one powerhouse semiconductor company.
The respective sales teams and distributors will continue to call on and provide great service and products. The families and portfolios of products will be combined soon, but for now, the contact will not change, nor will the products these firms offer. However, once the proposed merger has closed and combination can be carried out resources (expected second half of 2015), the solutions offered will be strong, complementary and exciting. If the transaction is successful, this upcoming merger will allow the companies to:
- Develop more complete solutions
- Shorten design cycles by combining complimentary technologies.
- Become a more valuable design partner
The two companies’ portfolios overlap primarily in only one area, RF power products. In this case, NXP has decided to sell their RF power portfolio and keep the industry-leading Freescale RF portfolio. All other product families are expected to complement each other very nicely. For instance, the Freescale Kinetis MCU combination with NXP’s leadership in connectivity and security is an easy and obvious fit. The same is true for NXP’s FM tuners and Freescale’s i.MX and Infotainment systems. Another is NXP’s leadership in secure ID and Freescale’s secure Digital Networking processors.
Once the merger is complete, the plan is to keep the NXP Semiconductors name and operate as one company under the NXP brand. The companies are committed to growth product lines and look forward to becoming the largest automotive semiconductor company on the planet and the fourth largest semiconductor supplier in the world. The focus of both companies has always been high-growth markets and focusing on our customers’ needs and this will not change.
The strength of combining NXP and Freescale is be exponential not incremental, and look forward to sharing these benefits.
The Form F-4 has been filed with the Securities and Exchange Commission. Once the proxy statement/prospectus is declared effective by the SEC. The shareholder vote will be called to approve the merger between NXP and Freescale which is expected to close the merger in 2H15.