NXP Semiconductors And Freescale Semiconductor Close Merger

(RTTNews) - NXP Semiconductors N.V. (NXPI) and Freescale Semiconductor, Ltd. (FSL) announced the completion of the merger pursuant to the terms of the merger agreement. The merged entity will continue operations as NXP Semiconductors N.V.

As previously announced, the transaction is expected to be accretive to NXP non-GAAP earnings in 2016, and NXP anticipates achieving cost savings of $200 million in 2016 with a clear path to $500 million of annual cost synergies.

NXP also announced the closing of the divestiture of its RF Power business to Jianguang Asset Management Co. Ltd, after receiving official confirmation that JAC Capital has deposited the required funds at its bank in China to pay the purchase price. The cash proceeds for the sale will be received later this month following the required regulatory filings for cross-border transfers of funds from China. NXP has obtained bridge financing until the funds are received.

In early March, NXP Semiconductors agreed to buy Freescale Semiconductor in a cash and stock deal valued at about $16.7 billion, including Freescale's net debt of $4.9 billion.