NXP Semiconductors N.V. has signed an agreement to divest its standard products business to a consortium of Chinese financial investors.
Under the $2.75 billion deal, the standard products branch—which consists of discrete, logic and powerMOS semiconductors used in the automotive, industrial, computing, consumer and wearables markets—will be transferred to the consortium by the close of the first quarter of 2017 pending regulatory approvals. NXP says the divesture will allow it to continue its strategic focus on high-performance mixed-signal semiconductors.
The consortium, which includes Beijing Jianguang Asset Management Co., Ltd. and Wise Road Capital Ltd., will rebrand the business under the name Nexperia. The new company will be headquartered in Nijmegen, the Netherlands. NXP says in 2015, its standard products business generated $1.2 billion in revenue.
The deal includes the semiconductors in the division but also the management team, led by Frans Scheper, and about 11,000 NXP employees will be transferred to Nexperia. The new business will be an independent company incorporated in the Netherlands that will be fully owned by JAC Capital and Wise Road Capital. Furthermore the standard product front-end wafer fabs located in Manchester, England and Hamburg, Germany will be transferred to Nexperia as well as the back-end facilities in Guangdong, China; Seremban, Malaysia; and Cabuyao, Philippines.
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