Netherland's NXP Semiconductor CEO Richard Clemmer mulling over $1.5B in acquisitions
Richard Clemmer, the Chief Executive Officer of NXP Semiconductor NV, is considering making as much as $1.5 billion in purchases, Bloomberg reported. In an interview at the International Consumer Electronics Show in Las Vegas today, Clemmer told Bloomberg that his company is targeting semiconductor firms that can complement and bolster its core business. Based in Eindhoven, Netherlands, NXP Semiconductor is a manufacturer of chips for cars, identification products, smartphones as well as smart-home applications, the report said.
Clemmer added that he would most likely acquire public companies. He said, "An acquisition could happen this year, but it's not imminent. We are in a position now where we can be a consolidator. We are thinking about what alternatives are out there."
Clemmer said NXP is thinking of making large acquisitions again after lowering its debt in the past few years. In a conference call in October, the chipmaker said that at the end of the third quarter, its debt stood at $3.7 billion. Clemmer said, "Now we feel like we can be much more comfortable considering transactions on a much larger scale."
Information from NXP's website said that the company creates solutions that allow secure connections for a smarter world. Established in 2006, it was formerly a division of Philips. It posted a net revenue of $4.36 billion in 2012 and spent $628 million in the same year for research and development.
NXP is also involved in various joint ventures, the website revealed. It has a 61% share in Systems on Silicon Manufacturing Company Pte Ltd, a 60% share in Jilin NXP Semiconductors Ltd, a 40% share in Suzhou ASEN Semiconductors Co Ltd and a 27% share in Advanced Semiconductor Manufacturing Co Ltd. Its 10 biggest OEM customers are Apple, Bosch, Continental, Delphi, Gemalto, Giesecke/Devrient, Huawei, NSN, Panasonic and Samsung, website information showed.