07.27.18
Qualcomm Incorporated announced the termination of the acquisition of NXP Semiconductors N.V. by Qualcomm River Holdings B.V., an indirect wholly owned subsidiary of Qualcomm, effective immediately.
In accordance with the terms of the purchase agreement, Qualcomm River Holdings will pay a termination fee of $2 billion to NXP on July 26, 2018. In connection with this termination, Qualcomm River Holdings has terminated its previously announced cash tender offer to acquire all of the outstanding shares of NXP.
Qualcomm also announced that its Board of Directors authorized a stock repurchase program of $30 billion, which replaces the company’s existing $10 billion stock repurchase authorization. Qualcomm expects to execute the majority of the stock repurchase program prior to the close of fiscal year 2019.
By executing this stock repurchase program, and other previously announced strategic objectives, including its $1 billion cost plan and diversifying into new growth industries, Qualcomm remains well-positioned to drive significant accretion and value for stockholders.
“Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged,” said Qualcomm CEO Steve Mollenkopf. “We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately $5 billion for fiscal year 2018, up greater than 70% from fiscal year 2016.”
Qualcomm continues to achieve strong growth, accelerated by its expansion and momentum in the areas of IoT, Automotive, RFFE, Compute, and Networking.
Qualcomm continues to lead in IoT, with more than $1 billion in revenue in fiscal year 2017. In Automotive, Qualcomm is poised to deliver connectivity solutions and leading intelligence capabilities for the connected car of tomorrow. As of July 2018, its backlog of awarded design wins is $5 billion, up from $3 billion in January 2018. Qualcomm’s RFFE solution has secured design wins with top-tier smartphone manufacturers in addition to securing non-binding memorandums of understanding with a contract value of $2 billion with leading OEMs: Lenovo, OPPO, Vivo and Xiaomi.
In accordance with the terms of the purchase agreement, Qualcomm River Holdings will pay a termination fee of $2 billion to NXP on July 26, 2018. In connection with this termination, Qualcomm River Holdings has terminated its previously announced cash tender offer to acquire all of the outstanding shares of NXP.
Qualcomm also announced that its Board of Directors authorized a stock repurchase program of $30 billion, which replaces the company’s existing $10 billion stock repurchase authorization. Qualcomm expects to execute the majority of the stock repurchase program prior to the close of fiscal year 2019.
By executing this stock repurchase program, and other previously announced strategic objectives, including its $1 billion cost plan and diversifying into new growth industries, Qualcomm remains well-positioned to drive significant accretion and value for stockholders.
“Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged,” said Qualcomm CEO Steve Mollenkopf. “We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately $5 billion for fiscal year 2018, up greater than 70% from fiscal year 2016.”
Qualcomm continues to achieve strong growth, accelerated by its expansion and momentum in the areas of IoT, Automotive, RFFE, Compute, and Networking.
Qualcomm continues to lead in IoT, with more than $1 billion in revenue in fiscal year 2017. In Automotive, Qualcomm is poised to deliver connectivity solutions and leading intelligence capabilities for the connected car of tomorrow. As of July 2018, its backlog of awarded design wins is $5 billion, up from $3 billion in January 2018. Qualcomm’s RFFE solution has secured design wins with top-tier smartphone manufacturers in addition to securing non-binding memorandums of understanding with a contract value of $2 billion with leading OEMs: Lenovo, OPPO, Vivo and Xiaomi.
