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.