NXP Semiconductors has sold its cordless and voice over IP phone chip business to DSP Group in a deal valued at $345m.

NXP, the former Philips semiconductor business which was acquired by private equity firms last year, will gain a shareholding of approximately 12% in DSP Group.

Egon Durban, managing director of Silver Lake, speaking on behalf of the group of private equity investors in NXP, said: “This transaction illustrates the tremendous strategic benefit of industry consolidation to create market leaders.”

The cordless & VoIP terminals business generated approximately $220m in revenues last year and comprises some 200 staff based at locations around the world, most of whom will transfer to the DSP Group.

“We will have a much stronger European presence to help us accelerate the penetration of VoIP and DECT technologies in the region and will have a more powerful research and development engine that will benefit from the advanced NXP process technologies,” said Eli Ayalon chairman and CEO, DSP Group.
 
"This transaction allows NXP to focus our growth on the six chosen market segments: cellular phones, personal entertainment, home electronics, automotive, identification and multi market semiconductors. Additionally, with the proceeds we will be able to strengthen these segments, for example with future acquisitions," said Frans van Houten, NXP president and CEO.