STMicroelectronics to acquire NXP Semiconductors MEMS sensors business for $900M

STMicroelectronics (STM) announced the planned acquisition of NXP Semiconductors’ (NXPI) MEMS sensors business, focused on automotive safety products as well as sensors for industrial applications. The MEMS sensors portfolio to be acquired primarily targets automotive safety sensors, both passive and active, as well as monitoring sensors. It also includes pressure sensors and accelerometers for industrial applications. The business to be acquired generated about $300M revenues in 2024 with gross and operating margin both significantly accretive for ST. It is also expected to be accretive to STMicroelectronics EPS from completion. STMicroelectronics and NXP have entered into a definitive transaction agreement for a purchase price of up to $950M in cash, including $900M upfront and $50M subject to the achievement of technical milestones. The transaction which will be financed with existing liquidity is subject to customary closing conditions, including regulatory approvals, and is expected to close in H1 2026.