Dutch chipmaker NXP Semiconductors N.V. says it has agreed to buy its smaller rival Freescale Semiconductor Ltd. for $11.8 billion in a deal that will make it the biggest supplier of microchips to the automotive industry.
The deal pays Freescale shareholders only a small premium. Freescale's market value was $11.1 billion based on Friday's closing price.
The companies said on Sunday that NXP will assume Freescale's debt, pushing the total value of the deal to $16.7 billion.
Freescale is based in Austin, Texas. It's a former division of Motorola and makes microprocessors and micro controllers for cars and industrial equipment.
The deal has been approved by the companies' boards. It's expected to close in the second half of the year if shareholders and regulators sign off.
