NXP Semiconductors Bets Big On Auto Connectivity With $242.5 Million Aviva Links Deal

NXP Semiconductors N.V. NXPI shares are trading slightly lower on Tuesday in the premarket session.

The firm announced that it has entered into a definitive agreement to acquire Aviva Links, a provider of advanced in-vehicle connectivity solutions, in an all-cash transaction valued at $242.5 million.

This acquisition is aimed at expanding NXP’s position in the automotive industry, particularly in the areas of advanced driver-assistance systems and in-vehicle infotainment.

Aviva Links specializes in Automotive SerDes Alliance compliant solutions, which are critical for the increasingly complex needs of software-defined vehicles.

With the rising demand for high-performance connectivity in digital cockpits and other in-vehicle systems, Aviva Links brings a highly advanced portfolio of SerDes point-to-point and Ethernet-based connectivity that supports data rates up to 16 Gbps. The company has already secured design wins with major automotive OEMs and is actively sampling its devices to Tier-1 suppliers.

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NXP Semiconductors, a founding member of the Automotive SerDes Alliance, aims to leverage this acquisition to shift the market from proprietary solutions to open-standard ASA SerDes links.

The ASA standard, which scales from 2 Gbps to 16 Gbps, is designed to facilitate seamless communication between vehicle sensors and improve overall system efficiency. This shift to open-standard solutions is expected to drive significant growth in the ADAS and IVI asymmetrical links market, which is projected to expand from $1 billion in 2024 to $2 billion by 2034.

The acquisition is expected to close in the first half of 2025, pending customary closing conditions and regulatory approvals.

NXP Semiconductors said it is confident that this move will strengthen its position in automotive networking solutions and help accelerate the development of software-defined vehicles, offering complete networking solutions to OEMs.

NXP Semiconductors held cash and equivalents of $3.1 billion as of September 29, 2024.

Price Action: NXPI shares are trading lower by 0.51% to $217.00 premarket at last check Tuesday.

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