Deacons recently advised JAC Capital, a subsidiary of JIC Capital - a Chinese state-owned investment company, on a US $1.8 billion acquisition of NXP Semiconductors’ power amplifier business. To date, the transaction is one of the largest outbound technology deals of 2015.
NXP Semiconductors’ business is primarily focused on supplying the mobile communications base station market, but has potential future growth applications in the areas of industrial lighting, next generation cooking and automotive electronic ignition systems.
The transaction is subject to review and approval by the US Federal Trade Commission, the European Commission, MOFCOM and other agencies. NXP and JAC Capital expect the sale to close within the second half of 2015, pending required regulatory approval and employee representative consultations.
The transaction involved key intellectual property issues as the transfer of IP and technology alone was worth approximately half of the deal size. Overall, the acquisition represents an important step for JAC Capital in its movement into the semiconductor market.
The Deacons’ team was led by corporate finance partner Alexander Que and also featured partners Catherine Zheng (intellectual property) and Kelvan Cheung (corporate finance). They were supported by registered foreign lawyer James Fairley and associates Ian Liu (intellectual property) and Mario Cheung (corporate finance).
Houthoff Buruma acted for the purchaser and De Brauw Blackstone Westbroek represented the seller.