NXP CEO Considering Acquisitions of Up to $1.5 BillionOlga Kharif
NXP Semiconductor NV is considering acquisition targets and could make a purchase of as much as $1.5 billion, said Chief Executive Officer Richard Clemmer.
The Eindhoven, Netherlands-based chipmaker is looking for semiconductor companies to complement and boost its core business, which includes chips for cars, identification products, smartphones and smart-home applications, Clemmer said in an interview at the International Consumer Electronics Show in Las Vegas today. He said he would potentially target public companies.
“An acquisition could happen this year, but it’s not imminent,” Clemmer said. “We are in a position now where we can be a consolidator. We are thinking about what alternatives are out there.”
NXP is considering large purchases again after reducing its debt over the last several years, Clemmer said. In October, the company said in a conference call that its debt at the end of the third quarter stood at $3.7 billion.
“Now we feel like we can be much more comfortable considering transactions on a much larger scale,” he said.