LOS ANGELES, Feb. 21 (Xinhua) -- Qualcomm has reached an agreement with NXP Semiconductors N.V. to purchase the Dutch chipmaker. The U.S. chipmaker raised its offer to 127.50 U.S. dollars per share.
Qualcomm on Tuesday increased its takeover bid for rival chipmaker NXP Semiconductors in hopes of shoring up support for the deal, and to potentially fend off its own unwanted suitor, Broadcom.
Under the new terms, Qualcomm would pay more than originally proposed, and the threshold for how many NXP shareholders must agree to tender their shares would be lowered to 70 percent from 80 percent.
"Qualcomm's leading SoC capabilities and technology roadmap, coupled with NXP's differentiated position in Automotive, Security and IoT, offers a compelling value proposition," Steve Mollenkopf, CEO of Qualcomm Incorporated was quoted as saying in a statement.
In statements, Qualcomm officials said NXP technology would bolster their company's products for the next-generation 5G wireless standard.
"We remain highly confident in our fiscal 2019 Non-GAAP EPS target of $6.75-$7.50, which includes $1.50 per share accretion from the acquisition of NXP," said Mollenkopf.
The 44 billion U.S. dollars deal comes one week after leaders of Qualcomm met with Broadcom executives to discuss a 146 billion U.S. dollars buyout, according to media reports. The chipmaker has rejected buyout offers from Broadcom twice.
