NXP Semiconductors N.V. to sell its RF Power business to China based JAC Capital for $1.8 billion. NXP to leverage benefits from this deal in closure of the NXP's merger with Freescale Semiconductor.
The NXP RF Power business makes RF power amplifiers for cellular basestation market and also capable to serve the areas of industrial lighting, next generation cooking and automotive electronic ignition systems.
As per the deal, the whole NXP RF Power business and its approximately 2,000 employees including its entire management team are to be transferred to an independent company incorporated in the Netherlands, which will be 100% acquired by JAC Capital upon closing of the transaction. The acquisition also covers all the relevant patents and intellectual property associated with the RF Power business and NXP back-end manufacturing operation in the Philippines that is focused on advanced package, test and assembly of RF Power products.
JAC Capital is a subsidiary of state owned JIC Capital, which was established for the purpose of investing in the high tech industry including semiconductor, information technology, networking, data service, cloud computing and telecommunications.