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On October 24, WINGTECH, a listed company, issued a plan to acquire all the shares of GP and LP of Nexperia Group by issuing shares and paying cash. After the transaction, WINGTECH will indirectly hold the control of Nexperia Group.

According to the current pre-evaluation of Nexperia Group, as of June 30, 2018, the value of 100% equity of Nexperia Group is 26.432 billion yuan, the issuing price of assets purchased by issuing shares is 24.86 yuan / share, and the supporting fund is 4.63 billion yuan.

Nexperia was a former independent derivative of the Standard Products business of NXP. It has more than 60 years expertise of semiconductor. As the former NXP Standard Products Division， it is a global leader in discrete devices, logic chips and MOSFET markets.

In 2016 and 2017, the net profit of Nexperia Group was 1.7 billion yuan and 1.27 billion yuan respectively. Over the past 3 years, Nexperia Group has maintained 38% rapid growth.

Nexperia is a typical Vertical Integrated Semiconductor Company & #40;IDM& #41; with strong profitability and its business covers design, manufacture and packaging test. It is the only large-scale IDM enterprise with complete chip design, wafer manufacture and packaging test in China. It has more than 10,000 hot-selling products and more than 20,000 customers including automobiles, telecommunications, consumption and so on. In the future, there will be strong growth potential in mobile communications, smart cars, IoT and other fields.

The announcement disclosed that the target company of this transaction, Nexperia Group, is a semiconductor standard device supplier, which integrates design, manufacture, packaging and testing. Its products are widely used in automotive, industrial control, computer, consumer electronics and other fields. Nexperia Group has more than 60 years expertise in semiconductor industry. Its market share of discrete devices, logic devices and MOSFET devices are among top 3 in the world. After years of development and accumulation, the main operating entities of Nexperia Group can maintain high consistency and effectiveness in complex electromagnetic, temperature and humidity extreme environment; meanwhile, the production process is very mature, sealing and testing technology is advanced, and the capacity of large-scale production is strong; its stable supply capacity of multi-field and multi-product lines helps it achieve 85 billion pieces shipment annually. In contrast, there is still a big gap between domestic semiconductor manufacturers in the above product areas. After completion of this transaction, listed company will take control of the target company and make up for the shortcomings of domestic enterprises in the above product areas.Under the background of high technical barriers in semiconductor industry,foreign-led core links, increasingly stringent transaction censorship and even acquisition exclusion in Europe and the United States, it is difficult for domestic enterprises to catch up with foreign high-quality semiconductor companies by acquiring companies, so the successful acquisition of Nexperia Group by domestic enterprises is extremely precious. Through this transaction, the listed company will indirectly obtain the control rights of Nexperia Group. The industrialization background of the listed company can effectively promote the industrial development of Nexperia Group.

According to industry insider ,WINGTECH's business covers intelligent terminals, automotive electronics, PC, servers, IoT and other fields, and Nexperia’s business are mainly for consumer electronics, automotive electronics, communications and other field. Industry insiders believe that the business areas of two companies are highly aligned. Meanwhile, Nexperia has been the upstream supplier of WINGTECH for many years, semiconductor devices of Nexperia can be widely used in all kinds of products of WINGTECH. Two companies maintain close and deep cooperation and have a profound foundation of mutual trust.

According to analysts, WINGTECH’s main clients are international well-known electronic brand manufacturers, their products including smartphones, IoT, laptop, and so on. Although the core components of electronic products manufactured by Nexperia are widely used in above consumer electronics and computer products, 40% of customers and markets are in Europe and the United States, and more than 40% of the revenue comes from automobile power semiconductor. WINGTECH, who is familiar with the global market, can introduce a large number of products of Nexperia to the world famous brand clients such as mobile phones, tablets, laptops and smart hardware, and help Nexperia expand its market share in consumer electronics, IoT and notebook computer market. WINGTECH has some domestic clients in the field of automotive electronics,but it has some deficiencies in the international market. After the integration of Nexperia, it will have the opportunity to enter the European, American, Japanese and Korean markets through the channel of Nexperia and open up a broad global automotive electronics market.

According to analysts, WINGTECH’s main clients are international well-known electronic brand manufacturers, their products including smartphones, IoT, laptop, and so on. Although the core components of electronic products manufactured by Nexperia are widely used in above consumer electronics and computer products, 40% of customers and markets are in Europe and the United States, and more than 40% of the revenue comes from automobile power semiconductor. WINGTECH, who is familiar with the global market, can introduce a large number of products of Nexperia to the world famous brand clients such as mobile phones, tablets, laptops and smart hardware, and help Nexperia expand its market share in consumer electronics, IoT and notebook computer market. WINGTECH has some domestic clients in the field of automotive electronics,but it has some deficiencies in the international market. After the integration of Nexperia, it will have the opportunity to enter the European, American, Japanese and Korean markets through the channel of Nexperia and open up a broad global automotive electronics market.

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