PE-backed Freescale to Be Acquired by NXP for $11.8B
March 03, 2015
Freescale Semiconductor (NYSE: FSL), a company backed by several big-name PE firms, has entered into an agreement to be acquired by NXP Semiconductors (NASDAQ: NXPI). Expected to close in 2H, the cash-and-stock deal comes with a total equity value of $11.8 billion, as of Friday's market close, and a total enterprise value of $16.7 billion when including debt. Credit Suisse is providing financing.
The merger will create a combined semiconductor company worth over $40 billion with revenue greater than $10 billion. A PE consortium of Blackstone, The Carlyle Group, Permira and TPG had acquired Freescale for $17.6 billion in 2006, later taking the company public in 2011. The PE firms still own a roughly 65% stake and are among the Freescale shareholders that will collectively own approximately 32% of the combined company.