by CIO Staff

Philips Completes Sale of Chip Unit Stake

Oct 02, 20061 min
Data Center

Koninklijke Philips Electronics has completed the sale of an 80.1 percent stake in its chip division to a group of private investment houses, the company said Saturday.

The stake in NXP Semiconductors, the new name of the chip unit, was sold to a group including Kohlberg Kravis Roberts & Co. (KKR), Silver Lake Partners and AlpInvest Partners. Philips expects to take in 6.4 billion euros (US$8.12 billion) in cash from the sale, after taxes. The European electronics giant will keep a 19.9 percent share of the business.

Philips said the deal places the value of NXP at 8.3 billion euros.

There have been a number of chip industry deals this year, including a US$17.6 billion offer for Freescale Semiconductor last month. In July, Intel sold its communications and application processor business to Marvell Technology Group for $600 million, and earlier this year, PMC-Sierra acquired the storage semiconductor business formerly owned by Agilent Technologies for $425 million.

-Dan Nystedt, IDG News Service (Taipei Bureau)

Related Links:

  • Intel Sells Communications Unit to Marvell for $600M

  • Freescale Accepts $17.6B Equity Buyout

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