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Qualcomm and NXP shares jump as deal nears finalization

Microprocessors sit on a circuit board displayed on the NXP Semiconductors NV pavilion at the Mobile World Congress in Barcelona, Spain, on Monday, March 2, 2015.
Simon Dawson | Bloomberg | Getty Images
Microprocessors sit on a circuit board displayed on the NXP Semiconductors NV pavilion at the Mobile World Congress in Barcelona, Spain, on Monday, March 2, 2015.

All the chips are falling into place for a Qualcomm and NXP Semiconductors deal to be finalized and announced as early as next week, according to Bloomberg.

The market responded with shares of Qualcomm and NXP sharply rising 3 and 4 percent in Thursday afternoon trading. The stocks closed slightly below those levels with Qualcomm ending the day about 2 percent higher, while NXP gained more than 3 percent.

Qualcomm is willing to offer 75 percent cash and 25 percent stock, while NXP reportedly prefers an all-cash offer. NXP is is hoping for a $120 per share deal, but Qualcomm is inching towards $110 per share. However, Bloomberg reports that both sides are closing the gap more and more, indicating a deal may be solidified soon.

Rumors of Qualcomm acquiring the Dutch-based automotive chip-maker gained traction late last month. Qualcomm, a chip-maker mostly involved with mobile devices, is hoping to potentially expand its chip businesses to other industries through acquiring NXP.

Other potential suitors had included Texas Instruments, Avago Technologies, Samsung Electronics and Intel.


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