NXP’s $1.76 Billion Acquisition of Marvell’s WiFi and Bluetooth Connectivity Assets

Skadden advised NXP Semiconductors N.V. on the deal

NXP Semiconductors N.V. (NASDAQ: NXPI) announces today that its wholly owned subsidiary has entered into a definitive agreement with Marvell (NASDAQ: MRVL) under which NXP will acquire Marvell’s Wireless Connectivity portfolio in an all-cash, asset transaction valued at $1.76 billion. The acquisition encompasses Marvell’s WiFi Connectivity Business Unit, Bluetooth technology portfolio and related assets.

The acquisition will enable NXP to deliver complete, scalable processing and connectivity solutions to its customers across its focus end markets. The acquisition includes approximately 550 people worldwide. NXP expects the acquisition to create new revenue opportunities in its target end markets. With approximately $300 million in revenue in Marvell’s fiscal 2019, NXP anticipates revenue associated with the acquired assets to double by 2022. The acquisition is expected to be accretive to NXPs non-GAAP operating profit in the first full quarter after the transaction closes.

The transaction is expected to close by the first quarter of 2020, subject to customary closing conditions, including regulatory approvals.

Marvell’s connectivity team has been a pioneer in providing innovative, secure and reliable Wi-Fi and Bluetooth combo solutions for nearly two decades. The acquisition enables NXP to offer its customers a full range of wireless connectivity solutions including WiFi 4, 5, 6 and Bluetooth/ BLE combo along with its flagship edge computing platforms including I.MX, Layerscape, Kinetis, LPC and the newly introduced RT Crossover Processors to provide comprehensive, turn-key solutions for the Industrial & IoT, Automotive and Communication Infrastructure markets that simplifies customers’ supply chain logistics and improves time-to-market.

The Skadden team includes: M&A partners Allison Schneirov and Sonia Nijjar (Palo Alto), and associates Thad Hartmann and Lauren Kramer; Intellectual Property and Technology partner Ken Kumayama (Palo Alto); Tax partner Gavin White ; Antitrust partner Maria Raptis; National Security/CFIUS partner Ivan Schlager (Washington D.C.) and counsel Jonathan Gafni (Washington D.C.); and Executive Compensation and Benefits partner Joseph Penko.

Involved fees earner: Jonathan Gafni – Skadden Arps Slate Meager & Flom; Thad Hartmann – Skadden Arps Slate Meager & Flom; Lauren Kramer – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom; Sonia Nijjar – Skadden Arps Slate Meager & Flom; Joseph Penko – Skadden Arps Slate Meager & Flom; Maria Raptis – Skadden Arps Slate Meager & Flom; Ivan Schlager – Skadden Arps Slate Meager & Flom; Allison Schneirov – Skadden Arps Slate Meager & Flom; Gavin White – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: NXP Semiconductors N.V.;

Author: Ambrogio Visconti