French smart card provider Gemalto will buy NXP Semiconductors’ wireless chip services business, which develops and markets software for chip technology MIFARE, the two companies said on Friday.
Dutch company NXP, founded by Philips, is restructuring and wants to cut debt after being hit by the economic slump. Gemalto did not disclose the financial details of the deal.
By buying NXP’s MIFARE4Mobile software, Gemalto would strengthen its services to link transport companies, banks and mobile phone operators and use mobile phones with existing payment and wireless ticketing infrastructure, Gemalto and NXP said in a statement.
NXP backers include KKR, Bain Capital, Apax Partners, AlpInvest Partners and Silver Lake Partners. NXP and Gemalto said the deal was subject to regulatory approvals and labour council consultations.
The deal is expected to close in the second quarter.
Reporting by Gilbert Kreijger
Source: Thomson Merger News
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