SAN JOSE, Calif. -- It's official: NXP BV--the chip company that resulted from a buyout from Koninklijke Philips Electronics NV (Amsterdam, The Netherlands) by a private equity consortium--has filed for an initial public offering (IPO) in the United States, according to a filing with the U.S. Securities and Exchange Commission (SEC).
The IPO was filed by an entity called Kaslion Acquisition, which will change its name to NXP. As previously reported, NXP (Eindhoven, The Netherlands) and its backers are looking to raise about $1 billion to pay down debt and further improve NXP's financial position.
NXP was once part of Philips. Then, in 2006, Kohlberg Kravis Roberts & Co., (KKR) led the consortium which acquired an 80.1 percent stake in NXP. Other investors included Silver Lake Partners, Bain Capital, Apax and AlpInvest Partners. Philips has retained its 19.8 percent stake in NXP and in December 2009 ascribed a value to its stake of 207 million euros (about $275 million).
Since then, NXP has divested several units to reduce costs and re-focus the firm. In September 2007, NXP completed the divestment of its cordless and VoIP terminal operations to DSP Group. In 2008, NXP's wireless operations from its former mobile and personal segment were contributed to a joint venture, ST-NXP Wireless.
Last year, NXP completed its strategic alliance with Virage Logic and obtained approximately 9.8 percent of Virage Logic's outstanding common stock. This transaction included the transfer of its CMOS intellectual property and development team in exchange for the rights to use Virage Logic's intellectual property and services. In 2010, NXP divested a major portion of its former home segment to Trident Microsystems Inc.
''As a part of our Redesign Program, we have significantly reduced our overall manufacturing footprint, particularly in high cost geographies. Accordingly, our wafer factory in Caen, France was sold in June 2009, our production facility in Fishkill, New York was closed in July 2009, ahead of schedule, and in January 2010, we closed part of our front-end manufacturing facility in Hamburg, Germany,'' according to the filing.
''We have also initiated process and product transfer programs from our ICN5 and ICN6 facilities in Nijmegen, the Netherlands, which are scheduled to close in 2010 and 2011, respectively. As a result, we will have reduced the number of our front-end manufacturing facilities from 14 at the time of our separation from Philips in 2006 to six by the end of 2011,'' according to the filing.
On Jan. 1, 2010, NXP reorganized its prior segments into two market-oriented business segments, High-Performance Mixed-Signal and Standard Products, and two other reportable segments, Manufacturing Operations, and Corporate and Other.
NXP posted sales of $3.843 billion in 2009, down from $5.443 billion in 2008 and $6.321 billion in 2007, according to the filing. It posted a loss of $161 million in 2009, compared to a loss of $3.574 billion in 2008 and a loss of $603 millioin in 2007, according to the filing.
NXP has approximately 27,000 employees located in more than 25 countries, with research and development activities in the Asia, Europe and United States, and manufacturing facilities in Asia and Europe.