Company Update (NASDAQ:NXPI): NXP Semiconductors N.V. and Freescale Announce Completion of Merger

NXP Semiconductors N.V. (NASDAQ:NXPI) and Freescale Semiconductor, Ltd. (NYSE:FSL) today announced the completion of the merger pursuant to the terms of the previously announced merger agreement from March 2015. The merger has created a high performance mixed signal semiconductor industry leader, with combined revenue of over $10 billion. The merged entity will continue operations as NXP Semiconductors and has become the market leader in automotive semiconductor solutions and in general purpose microcontroller (MCU) products.

“Through this merger we have created an industry powerhouse focused on the high growth opportunities in the Smarter World, capitalizing on the emerging opportunities offered by the accelerating demand for connectivity, processing and security. Today’s formation of the new NXP is a transformative step on our journey to become the industry leader in high performance mixed signal solutions,” said Rick Clemmer, NXP Chief Executive Officer. “This merger enables us to deliver more complete solutions to our customers as we are emerging as the leader in the Secure Connections – and the supporting infrastructure – for the Smarter World domain. As a result, we reiterate today that we fully expect to continue to significantly out-grow the overall market, drive world-class profitability and generate even more cash, allowing us to continue creating significant value for NXP’s shareholders.”

As previously announced, the transaction is expected to be accretive to NXP non-GAAP earnings in 2016, and NXP anticipates achieving cost savings of $200 million in 2016 with a clear path to $500 million of annual cost synergies.

NXP also today announced the closing of the divestiture of its RF Power business to Jianguang Asset Management Co. Ltd (“JAC Capital”), after receiving official confirmation that JAC Capital has deposited the required funds at its bank in China to pay the purchase price. The cash proceeds for the sale will be received later this month following the required regulatory filings for cross-border transfers of funds from China. NXP has obtained bridge financing until the funds are received. (Original Source)

Shares of NXP Semiconductors closed last Friday at $90.45, up $0.53 or 0.59%. NXPI has a 1-year high of $114 and a 1-year low of $70.35. The stock’s 50-day moving average is $84.85 and its 200-day moving average is $91.72.

On the ratings front, NXP Semiconductors has been the subject of a number of recent research reports. In a report issued on November 18, FBR analyst Christopher Rolland reiterated a Buy rating on NXPI, with a price target of $105, which represents a potential upside of 16.1% from where the stock is currently trading. Separately, on November 12, Sterne Agee CRT’s Doug Freedman maintained a Buy rating on the stock and has a price target of $107.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher Rolland and Doug Freedman have a total average return of 9.4% and 20.8% respectively. Rolland has a success rate of 65.4% and is ranked #233 out of 3645 analysts, while Freedman has a success rate of 71.6% and is ranked #22.

Overall, 11 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $109.70 which is 21.3% above where the stock closed last Friday.

NXP Semiconductors NV is a semiconductor company providing High Performance Mixed Signal & Standard Product solutions. Its solutions are used for automotive, identification, wireless infrastructure, industrial, mobile, consumer & computing applications.



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