Qualcomm has announced the termination of the acquisition of NXP Semiconductors effective immediately and authorized a stock repurchase program of $30 billion thereby replacing company’s existing $10 billion stock repurchase authorisation.
In accordance with the terms of the purchase agreement, Qualcomm River Holdings will pay a termination fee of $2 billion to NXP on July 26, 2018. In connection with this termination, Qualcomm River Holdings has terminated its previously announced cash tender offer to acquire all of the outstanding shares of NXP.
Qualcomm expects to execute the majority of the stock repurchase program prior to the close of fiscal year 2019. By executing this stock repurchase program, and other previously announced strategic objectives, including its $1 billion cost plan and diversifying into new growth industries, Qualcomm remains well-positioned to drive significant accretion and value for stockholders.
Steve Mollenkopf, Chief Executive Officer, Qualcomm said, “Our core strategy of driving Qualcomm technologies into higher growth industries remains unchanged. We will continue to focus on our strong momentum in these growth industries with projected revenues of approximately $5 billion for fiscal year 2018, up greater than 70 percent from fiscal year 2016. We believe our technology leadership and disciplined execution will drive significant value creation for our stockholders.”