NXP was bought by KKR et al, and Freescale by Blackstone et al.
Both companies’ revenues were about the same but, in one deal NXP was valued at $10 billion and in the other Freescale was valued at $16 billion.
Now NXP has a market cap of $14 billion while Freescale’s market cap is $6 billion.
The private equity stake in NXP is now under 15% while it’s 76% in Freescale.
When the private equity companies bought NXP and Freescale they loaded them up with huige debts.
NXP still has debt of $2.5 billion, Freescale has debt of $6.39 billion.