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Following pressure from shareholders, Qualcomm has increased its offer to purchase NXP semiconductors from an agreed $110 per share to $127.50. In a statement, Qualcomm said it had reached an agreement with NXP's board of directors for the increased offer, after shareholders said the original offer was too low.

"The acquisition of NXP will enable us to accelerate our growth strategy," said Tom Horton, Presiding Director of the Qualcomm Board of Directors. "The Board unanimously believes this is an attractive acquisition at this price for Qualcomm stockholders based on NXP's recent strong financial performance, the growth in key strategic areas such as Auto and IoT and our high confidence in management's ability to execute upon the synergy opportunities."

NXP's Auto business has increased revenues by 11% year over year. Qualcomm has also significantly improved its own capabilities in key industry segments such as Auto ($3 billion revenue pipeline), IoT ($1 billion in FY17 sales) and Networking, further enhancing the value proposition of the combined company to its customers and stockholders.

Under new terms of the deal, Qualcomm will need to purchase a minimum of 70% of NXP's shares to gain control, which is lower than the original 80% required. The deal, which was first struck between the two companies in late 2016, has received antitrust clearance from eight of the nine required government regulatory bodies around the world. The transaction remains contingent on clearance from the Ministry of Commerce (MOFCOM) in China.

"With only one regulatory approval remaining, we are working hard to complete this transaction expeditiously," said Qualcomm's chief executive officer Steve Mollenkopf. "Our integration planning is on track and we expect to realize the full benefits of this transaction for our customers, employees and stockholders."

Qualcomm is currently fending off its own takeover bid from Broadcom. The company's Board of Directors issued a statement on 16 February rejecting Broadcom's offer of $82 per share. The letter said, "The Board remains unanimously of the view that this proposal materially undervalues Qualcomm and has an unacceptably high level risk, and therefore is not in the best interests of Qualcomm stockholders."

However, the letter continued to say that the Board is "open to further discussions with Broadcom to see if a proposal that appropriately reflects the true value of Qualcomm shares, and ensures an appropriate level of deal certainty, can be obtained."

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