editor's blog
Subscribe Now

Freescale Acquired by NXP

Did not see that coming.

American chipmaker Freescale will be acquired by Dutch rival NXP in a cash and stock deal worth about $11.8 billion. The combined firm will have a valuation of about $40B, making it one of the larger semiconductor vendors in the world. Freescale shareholders will receive about one-third of a share of NXP stock and $6.25 in cash for each share of Freescale stock.

The deal gives Freescale an “enterprise value” (the net worth of the company minus its cash in the bank) of $16.7 billion. The purchase price is considerably below that sum because Freescale doesn’t actually have cash in the bank; it’s in debt. So NXP will be acquiring Freescale’s debt in addition to its intrinsic value as a company, a pretty typical arrangement in these situations.

For the historically minded, Freescale was originally called Motorola Semiconductor after it was spun off from parent company Motorola (which is now part of Google). Motorola/Motorola Semi created many of the embedded world’s most popular microprocessors, including 68HC05, 68HC11, and the 68000 family that powered early Sun workstations and Apple’s first Macintoshes. The company had some misses, too, like the 88000 RISC architecture and the “RISC-ified” ColdFire. In recent years, the company had most of its success in automotive and deeply embedded industrial segments. The company got its start almost 100 years ago, making radios for automobiles, hence the name Motorola: motorized Victrola.

For its part, NXP was once Philips Semiconductor, the chip-making arm of the giant Dutch electronics firm, before being spun off in 2006. The acquisition is expected to close in the second half of this year.

Leave a Reply

featured blogs
May 19, 2019
https://youtu.be/cTEPUNpqcRg Made at Samsung HQ (camera Sean) Monday: Bob Smith on ESD Alliance, ES Design West...with Wine Tuesday: After Meltdown and Spectre Wednesday: Vision Q7 DSP: Real-Time... [[ Click on the title to access the full blog on the Cadence Community site....
May 17, 2019
The Design Automation Conference (DAC) is the premier conference for automated electronics design and verification technology. For 2019, DAC returns to sunny Las Vegas, Nevada at the Las Vegas Convention Center from June 2-5, 2019. We'€™ve packed each day full of exciting ...
May 17, 2019
In the days of old we looked into the “green” for guidance on how much further down into the world of miniaturization we could go. What is the green you ask? I am talking about the substrate that has served us all well for many years; the PCB. We are at a crossroa...
Jan 25, 2019
Let'€™s face it: We'€™re addicted to SRAM. It'€™s big, it'€™s power-hungry, but it'€™s fast. And no matter how much we complain about it, we still use it. Because we don'€™t have anything better in the mainstream yet. We'€™ve looked at attempts to improve conven...