NXP is selling its RF power business to Chinese company Jianguang Asset Management for $1.8bn in a move which will help to fund NXP's acquisition of Freescale.NXP is selling its RF power business to Chinese company Jianguang Asset Management for $1.8bn in a move which will help to fund NXP's acquisition of Freescale.
Under the agreement, Jianguang – also known as JAC Capital – will not only acquire NXP's RF power business, but also some 2000 NXP employees, including the complete management team. The deal will also see the transfer of all relevant patents and IP, along with a back operation in the Philippines that focuses on package, test and assembly of RF power products. The acquisition is expected to complete later in 2015.
"Although we would have expected a higher valuation in a regular disposal, JAC Capital's ability to support continued growth and development of the business and its ability to sign and close a transaction rapidly was a key factor in enabling the best outcome for our customers and shareholders, as well as supporting the closure of the merger with Freescale Semiconductor," said NXP's Rick Clemmer, pictured.
"We are happy to reach an agreement to acquire the RF Power business from NXP with its strong team and established technology. We will keep on increasing investment in R&D, manufacturing and customer service of the new company to strengthen its market position," said Brighten Li, chairman of JAC Capital' Investment Evaluation Committee.
Author
Graham Pitcher
Source: www.newelectronics.co.uk