AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.
The deal, if approved by regulators, will put the one-time manufacturer of the motion co-processor and the current supplier of the Apple Pay near-field communication chipset under Qualcomm's control.
Besides just supplying the NFC and authentication chips for Apple Pay in the iPhone and Apple Watch, NXP supplies a number of solutions to automotive vendors for automotive "infotainment" displays, as well as a variety of wired and wireless networking chipsets.
Qualcomm currently supplies Apple with the cellular modem found in some models of iPhone 7, with Apple choosing to use an Intel-produced modem to diversify its supplier base, and not be reliant on any one supplier for key components.
A subsidiary of Qualcomm will tender an offer to acquire all of the issued and outstanding common shares of NXP for $110 per share in cash, representing a total enterprise value of approximately $47 billion.Â The offer has been unanimously approved by the boards of directors on both companies.
The move appears to be a strategic one by Qualcomm to widen its customer base. According to Qualcomm's own financial data, Samsung and Apple are responsible for 50% of the company's consolidated revenue, and a manufacturer shift by either away from its products would have profound effects on earnings.
The combined company is expected to have annual revenues of more than $30 billion. Neither company is expecting any regulatory resistance to the deal.