Smartphone chip designer Qualcomm has agreed to the world’s biggest automotive chip maker NXP in a deal worth $47bn including debt. The combined company expects annual revenues of more than $30bn.
According to Dealogic, the transaction is in line to be the largest European technology targeted M&A deal on record, and will be the biggest semiconductors targeted M&A deal on record globally, surpassing the $36.1bn acquisition of Broadcom by Avago Technologies announced in May 2015.
While Qualcomm turned to US elite Paul, Weiss, Rifkind, Wharton & Garrison and Cravath, Swaine & Moore, A&O’s Amsterdam outpost also advised on the deal. A&O’s team was led by Amsterdam corporate partner Christiaan de Brauw. Other team members include tax partner Godfried Kinnegim and corporate partner Joyce Leemrijse. The Paul Weiss team includes corporate partners Scott Barshay and Steve Williams and tax partner Jeff Samuels.
DLA Piper’s US arm acted on behalf of the Qualcomm Board with a team including global co-chief executive Jay Rains and M&A partners Doug Rein and Jeff Baglio. Shearman & Sterling also played a role on the deal, advising Qualcomm on European competition law aspects.
NXP was guided through the transaction by Skadden, Arps, Slate, Meagher & Flom and Amsterdam-headquartered De Brauw Blackstone Westbroek.
Meanwhile, Sullivan & Cromwell won a spot on the deal acting for Qualcomm’s financial adviser Goldman, Sachs & Co with New York based M&A partner Stephen Kotran leading the team. Jones Day advised NXP’s financial adviser Qatalyst Partners with a team led by London M&A partner Ferdinand Mason.
The acquisition follows Japanese telecoms group SoftBank’s £24.3bn deal to acquire UK tech flagbearer ARM Holdings with Slaughter and May, Freshfields Bruckhaus Deringer, Davis Polk & Wardwell and Morrison & Foerster all winning roles. Advisers took home £14.5m in fees for the transaction.
Earlier this month, Herbert Smith Freehills and Cravath advised British American Tobacco on its offer to acquire the remaining 57.8 % stake in Reynolds American for $47bn.