Everyone owns a smartphone nowadays and this makes companies like Qualcomm who produce the best chips for mobile devices quite profitable. Therefore, no one should be surprised to hear that Broadcom wants to acquire Qualcomm.
However, it seems like Qualcomm has different plans because it wants to purchase and merge with NXP which will improve its chip manufacturing efficiency.
Qualcomm Raises Bid on NXP
Qualcomm is not keeping the fact that it wants to purchase NXP a secret. In fact, Qualcomm made it clear to the public that it put an offer of $110 per share for NPX a couple of months ago. Even though this offer prices NXP at a total of $38 billion, the shareholders declined this offer. It seems like this was the right move because Qualcomm just sweetened the deal.
Qualcomm Sweetens the Deal
After seeing that the NXP shareholders are not willing to sell at $110 per share, Qualcomm decided to increase the bid to $127.50 per share. This is an important price increases because it puts the total value of NXP at an astonishing $44 billion. However, the NXP shareholders are still to decide what they are going to do.
Why Does Qualcomm Want NXP?
There are many reasons why Qualcomm wishes to purchase NXP, but the most important one is that Qualcomm will get Broadcom off its back after purchasing NXP. Another important thing that’s going to happen if Qualcomm acquires NXP is that Qualcomm’s manufacturing process is going to be enhanced with the addition of NXP’s services.
Getting Involved with the Automotive Space
One thing that NXP does better than Qualcomm at this moment is manufacturing chips that are designed for the automotive space. Qualcomm has shown interested towards that and it hopes that acquiring NXP will give it a lead start in that industry.