STMicro blends wireless chip assets with NXP

STMicroelectronics announced today plans to merge its wireless chipsets assets with NXP's wireless chipset assets to form a joint venture that STMicro would control. STMicro is set to pay NXP $1.55 billion for an 80 percent stake in the JV and the option to buy the other 20 percent after three years. After spinning out from Philips in 2006, NXP is now owned by a PE consortium that includes Kohlberg Kravis Roberts and Silver Lake Partners. The joint venture is designed to better position the companies against Texas Instruments and other dominant players in the wireless chip sector. The combined companies had revenues of $3 billion in 2007 and have 9,000 employees worldwide.

For more on the chipset JV:
- read this article from the WSJ (sub. req.)