Chinese consortium in $2.75b deal for NXP Semiconductors unit
NXP Semiconductors, a Dutch chip maker listed in the US, has agreed to sell its standard products business to Chinese state-owned private equity firm Jianguang Asset Management (JAC Capital) and Wise Road Capital for $2.75 billion.
It comes just six months after NXP sold its radio frequency (RF) power unit to JAC Capital for $1.8 billion, a deal that helped clear the way for NXP's acquisition of its US rival Freescale Semiconductor.
Under the agreement, the standard products unit, including about 11,000 employees and current management led by Frans Scheper, will become a new company called Nexperia, based in Netherlands, according to a release. JAC Capital and Wise Road will support global expansion through investment in R&D, manufacturing and customer services.
The business supplies semiconductors to customers in the automobile, industrials, computing, consumer and wearable application spaces. It contributed $1.2 billion out of NXP's $6.1 billion in total revenue last year.
The transaction, which is expected to close in the first quarter of 2017, allows NXP to focus on its high-performance mixed signal business. The segment generated more $4.7 billion in revenue last year.
JAC Capital, part of China Jianyin Investment, was established to invest in high-tech industries including semiconductors, IT and networking, data services, cloud computing and telecommunications, in order to support industrial transformation in China. Wise Road claims to be a global PE fund with a similar mandate and also invests in renewable energy, advanced manufacturing and smart city initiatives.
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