PARIS — ST-NXP Wireless is now a reality. STMicroelectronics NV and NXP BV have completed the deal, announced mid-April, bringing together their respective mobile and wireless businesses into a joint venture company. Operations are expected to start on August 2 working on 2G, 2.5G, 3G, multimedia, connectivity and all future wireless technologies.
As previously announced, at closing, ST took an 80-percent stake in the joint venture and contributed $1.55 billion to NXP, including a control premium. ST-NXP Wireless will start with a cash balance of about $350 million, noted the two parties.
ST-NXP Wireless is composed of experienced industry leaders from both parent companies. Alain Dutheil, presently chief operating officer (COO) of ST, has been assigned to lead ST-NXP Wireless as CEO focusing exclusively on the joint venture.
The management also includes Abhijit Bhattacharya, currently financial controller for the multimarket business Unit at NXP, who is set to become chief financial officer of the joint venture; Tommi Uhari, current executive vice president and general manager of Mobile, Multimedia & Communications Group, STMicroelectronics; and Marc Cetto, current executive vice president and general manager of Mobile & Personal Business Unit, NXP.
"The wireless industry is undergoing a major change. Semiconductor companies are coming to play an ever more important role, contributing an ever larger share of the product value chain to handset makers, who expect us to deliver leading-edge solutions across the full spectrum of mobile applications," commented Dutheil.
He continued: "ST-NXP Wireless is being created to address this new paradigm; we'll be equipped with a world-class product and technology portfolio and top-league R&D capabilities to compete for leadership in the wireless and mobile-multimedia market."
Headquartered in Geneva, Switzerland, ST-NXP will have 7,500 employees with facilities in Belgium, China, Finland, France, Germany, India, Italy, Malaysia, Morocco, the Netherlands, Philippines, Singapore, Sweden, Switzerland, the United Kingdom and the United States.
The completion of the deal comes soon after the European Commission authorized, under the EU merger regulation, the proposed joint venture between ST and NXP.
