On October 24, Wingtech from mainland China announced that it plans to acquire all GP and LP shares of Nexperia Group by issuing shares and paying cash. After the transaction is completed, Wingtech will indirectly hold control of Nexperia Group.
Nexperia is NXP's previous standard product business unit. After the acquisition in 2016, Nexperia was established. Over the past three years, Nexperia has maintained a 38% growth rate. According to the current Nexperia Group's pre-assessment, the Nexperia Group's 100% equity value was 26.432 billion yuan as of the estimated benchmark date of June 30, 2018.
After the completion of the transaction, Wingtech will take control of Nexperia, which will make up for the weakness of Chinese companies in the field of semiconductor devices. In addition, through this transaction, Wingtech's industrialization background can strongly promote the industrial development of Nexperia Group.
According to industry analysts, Wingtech's business covers smart terminals, automotive electronics, PCs, servers, IoT, etc. Nexperia is mainly for consumer electronics, automotive electronics, communications, etc. The business areas of both parties are highly compatible, and Nexperia was the supplier of Wingtech many years ago. Nexperia's semiconductor devices are widely used in Wingtech's various products. The two sides have maintained close and in-depth cooperation and have a very strong mutual trust base.
From an industry perspective, Nexperia is a global leader in upstream core components such as logic chips, discrete devices and power semiconductors. Wingtech has global leading technology in system design for downstream intelligent terminals. The integration of the two products and technologies has great potential for development in the 5G era. Based on its own technology and deep understanding of downstream intelligent terminals and automotive applications, Wingtech can deeply integrate with Nexperia chip-level packaging technology to develop 4G/5G and IoT module products to maximize product value. As 5G enters the commercial stage, the era of industrial interconnects and smart cars has arrived. In the future, Wingtech's module products based on Nexperia products will have great potential in applications such as smart cars, smart hardware and smart cities. Together with Wingtech's software, servers, drivers, and cloud services capabilities, it provides a complete system solution in the IoT era.