Freescale Semiconductor Ltd. was spun out of Motorola Inc. in 2006.
The Austin-based Freescale (NYSE: FSL) also disclosed plans to start selecting the best business processes and tech systems between the two companies next month. The proposed $11.8 billion merger— which would eclipse all other recent M&A deals in Austin — is scheduled to be completed during the second half of the year, according to a Tuesday filing with the U.S. Securities and Exchange Commission.
Freescale develops chips used in automobiles, consumer products, telecommunications infrastructure and industrial equipment. The company was spun out of Motorola Inc. in 2006 and completed an initial public offering in 2011. It now employs 17, 500 workers compared with 16, 800 in late 2013, according to SEC filings.
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The NXP Semiconductors (Nasdaq: NXPI) merger still needs shareholder approval. The Netherlands-based company was ranked No. 14 in terms of global semiconductor sales during 2014. Freescale, which reported revenue of $4.6 billion last year, was ranked No. 17.
Last month, Reuters reported that Singapore- and California-based Avago Technologies Ltd. was in discussions to acquire Freescale in February. Avago, which reports a market capitalization of $32 billion, had lined up banks to finance an offer. However, it ended negotiations when Freescale shares surged above $36 on Feb. 13 after the New York Post reported that Freescale was shopping itself, according to the report.