Freescale Semiconductor Ltd., headquartered at 6501 W. William Cannon Drive in Southwest Austin, plans to merge with Netherlands-based company NXP Semiconductors N.V. in mid-2015 as part of an agreement approved by shareholders July 2.
The merger was approved with more than 99 percent of votes cast in favor, according to an NXP news release. Richard Clemmer, NXP Chief Executive Officer, will be president and CEO of the merged company, and shareholders also appointed Gregory L. Summe and Peter Smitham as non-executive directors of NXP.
“We welcome the decisions to approve the merger proposal with such an overwhelming majority,” Clemmer said in the news release. “The combination of NXP and Freescale creates an industry powerhouse. … We fully expect to continue to significantly outgrow the overall market, drive world-class profitability and generate even more cash, which taken together will maximize value for both Freescale and NXP shareholders.”Read more
The deal is subject to customary closing conditions, but NXP and Freescale expect to close in the second half of 2015.
In a statement March 2, Gregg Lowe, Freescale Semiconductor president and CEO, said the merger will “create significant value” for Freescale employees. The merger will result in a company valued at more than $40 billion and revenue of more than $10 billion, according to a news release.