NXP has closed its nearly $12 billion deal to acquire Freescale, doubling the proportion of auto-related revenue to 40 percent to create the world's top maker of automotive electronics, the company said on Monday.
Automotive unit Chief Executive Kurt Sievers said in an interview that the deal would allow NXP to assemble a range of discreet automotive applications into more complete systems running on top of Freescale processors.
It propels NXP into new application areas in cars including powertrain, safety and body electronics, Sievers said, building on its existing leading positions in audio infotainment, security and vehicle networks. It aims to build security into key car systems to guard against hackers.
The merger also bolsters NXP's position in other fast-growing chip markets, including wearable devices and health monitors, for example, while capitalising on the company's strengths in security and payments.
CEO Rick Clemmer said the merger will allow NXP to focus on making driving safer and more convenient.
"The combination of the security platform we had at NXP combined with the computing platform with Freescale puts us in a leadership position," Clemmer told CNBC's "Squawk on the Street." "And then with the combination of the computing and security and connectivity, we think we can drive the connected device market and be the leader in making all of our lives more convenient and safe."