NXP Semiconductors said it has signed an agreement to facilitate the sale of its RF Power business to Jianguang Asset Management (JAC Capital) for USD 1.8 billion. CEO Richard Clemmer added that the deal will support the closure of the company’s merger with Freescale Semiconductor and that NXP will keep investing in the new company's R&D, manufacturing and customer service, supported by JAC Capital, in order to strengthen its market position.
Under the agreement, the NXP RF Power business will become an independent company incorporated in the Netherlands and 100 percent owned by JAC Capital. The company will be led by its current management team and include around 2,000 NXP employees. All relevant patents and intellectual property associated with the business will be transferred in the sale, as well the NXP back-end manufacturing operation in the Philippines that is focused on advanced package, test and assembly of RF Power products.
The sale still needs to be approved by the US Federal Trade Commission, the European Commission, MOFCOM and other agencies in connection with the review of NXP’s proposed acquisition of Freescale Semiconductor. NXP and JAC Capital expect the sale to close within the second half.
NXP said the sale will be dilutive to earnings on a stand-alone basis in the fourth quarter and in 2016. Proceeds from the sale will help fund the acquisition of Freescale Semiconductor.
