Freescale Reveals NXP Mega Merger Details
MADISON, Wis. — In announcing yet another quarter of solid growth in product revenues and market shares in a Thursday (April 23) earnings call, Freescale Semiconductor CEO Gregg Lowe spoke confidently about the company’s upcoming merger with NXP Semiconductors.
The Dutch giant — with more than 27,800 employees in over 20 countries — is scheduled to complete the acquisition of Austin, Texas-based Freescale — 17,000 employees — before the end of this year.
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For any company, this sort of mega-merger is no cakewalk. However, the two companies have been moving fast since the acquisition was announced only seven weeks ago.
Lowe reported that preparations are already under way at each company for the integration. NXP named two people, while Freescale assigned Karen Rapp, Freescale’s vice president and chief information officer, to manage the process.
In addition, the companies designated about a dozen people to “determine work streams and tasks with a clear objective to lay the groundwork,” Lowe said. “Both Rick Clemmer [NXP CEO] and I are very pleased with the progress.”
Asked about the magnitude of tasks involved, Lowe told us, “At a higher level, we’veVolumetric Efficiency encountered no big problems thus far. But I am sure there will be a million little things both companies need to sort out.”
Lowe acknowledged that transactions like this create a lot of anxiety. “Based on my own experience in acquisitions, uncertainty tends to subside, as decisions are made and announced.”
He noted that the new senior management team that will report to NXP CEO Clemmer was already announced to all employees worldwide both at NXP and Freescale. As the organization solidifies, a cascade of additional announcements will follow, he added.
The prospect of becoming a part of NXP is generating excitement among Freescale’s 17,000 employees and customers, said Lowe. NXP is approaching the integration with “high energy, positive enthusiasm and clarity in purpose…I’m very impressed with them,” he added.