Filed by NXP Semiconductors N.V.
Pursuant to Rule 425
under the Securities Act of 1933 and
deemed filed pursuant to Rule 14a-12 under
the Securities Exchange Act of 1934
Subject Company: Freescale Semiconductor, Ltd. (Commission File No. 001-35184)
No Offer or Solicitation
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between NXP Semiconductors N.V. (NXP) and Freescale Semiconductor, Ltd. (FSL).
Important Information For Investors and Shareholders
In connection with this proposed business combination, NXP has filed with the Securities and Exchange Commission (the SEC) a registration statement on Form F-4 that includes a definitive joint proxy statement of NXP and FSL that also constitutes a definitive prospectus of NXP. The registration statement was declared effective by the SEC on June 1, 2015. Each of NXP and FSL may file with the SEC other documents in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF NXP AND FSL ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT ARE FILED OR MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. The definitive joint proxy statement/prospectus will be delivered to shareholders of NXP and FSL on or about June 2, 2015. Investors and security holders are able to obtain free copies of the definitive joint proxy statement/prospectus and other documents filed with the SEC by NXP and/or FSL through the internet website maintained by the SEC at http://www.sec.gov. Copies of the definitive joint proxy statement/prospectus and the other documents filed with the SEC by NXP are also available free of charge on NXPs Investor Relations internet website at http://www.nxp.com/investor or by contacting NXPs Investor Relations Contact by phone at 1-408-518-5411. Copies of the definitive joint proxy statement/prospectus and the other documents filed with the SEC by FSL are available free of charge on FSLs Investor Relations internet website at http://investors.freescale.com or by writing to Freescale Semiconductor, Ltd., c/o Freescale Semiconductor, Inc., 6500 William Cannon Drive West, Austin, Texas 78735, Attention: Investor Relations or by phone at 1-512-895-2454.
Forward Looking Statements
Certain statements in this communication regarding the proposed transaction between NXP and FSL are forward-looking statements. The words anticipate, believe, ensure, expect, if, intend, estimate, probable, project, forecasts, predict, outlook, aim, will, could, should, would, potential, may, might, anticipate, likely, plan, positioned, strategy, and similar expressions, and the negative thereof, are intended to identify forward-looking statements. These forward-looking statements, which are subject to numerous factors, risks and uncertainties about NXP and FSL, may include projections of their respective future business, strategies, financial condition, results of operations and market data. These statements are only predictions based on current expectations and projections about future events. There are important factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected, including the risk factors set forth in the definitive joint proxy statement/prospectus, NXPs most recent Form 20-F and FSLs most recent reports on Form 10-K, Form 10-Q and other documents on file with the SEC and the factors given below:
| the failure to consummate or delay in consummating the proposed transaction; |
| the timing to consummate the proposed transaction; |
| the risk that a condition to closing of the proposed transaction may not be satisfied; |
| the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated; |
| NXPs and FSLs ability to achieve the synergies and value creation contemplated by the proposed transaction; |
| the ability of either NXP or FSL to effectively integrate their businesses; and |
| the diversion of management time on transaction-related issues. |
FSLs and NXPs forward-looking statements are based on assumptions that may not prove to be accurate. Neither FSL nor NXP can guarantee future results, level of activity, performance or achievements. Moreover, neither FSL nor NXP assumes responsibility for the accuracy and completeness of any of these forward-looking statements. FSL and NXP assume no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
***
The following is a Company update presentation of August 31, 2015: NXP Proposed Merger with Freescale Creates an Industry Powerhouse
NXP
Proposed Merger with Freescale Creates an Industry
Powerhouse Company Update | August 31, 2015
|
2 SECURE CONNECTIONS FOR A SMARTER WORLD Certain statements in this communication regarding the proposed transaction between NXP Semiconductors N.V. (NXP) and Freescale
Semiconductor, Ltd.
(FSL) are
forward-looking statements. The words anticipate, believe, ensure, expect, if, intend, estimate, probable, project,
forecasts, predict,
outlook, aim, will, could, should, would, potential, may, might, anticipate, likely, plan, positioned, strategy, and similar expressions, and the negative thereof, are intended to identify forward-looking statements. These forward-looking statements, which are subject to
numerous factors, risks and uncertainties about NXP and FSL, may include
projections of their respective future business, strategies, financial condition, results of operations and market data. These statements are only predictions based on current expectations and projections about future events. There are important
factors, risks and uncertainties that could cause actual outcomes and
results to be materially different from those projected, including the risk factors set forth in the definitive joint proxy statement/prospectus, NXPs most recent Form 20-F and FSLs most recent reports on Form 10-K, Form 10-Q and other
documents on file with the SEC and the factors given below:
the failure to consummate or delay in consummating the proposed transaction; the timing to consummate the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied;
the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated; NXPs and FSLs ability to achieve the synergies and value creation contemplated by the proposed transaction;
the ability of either NXP or FSL to effectively integrate their businesses; and the diversion of management time on transaction-related issues. FSLs and NXPs forward-looking statements are based on assumptions that may not prove to be accurate. Neither FSL nor NXP
can guarantee future results, level of activity, performance or
achievements. Moreover, neither FSL nor NXP assumes responsibility for the accuracy and completeness of any of these forward-looking statements. FSL and NXP assume no obligation to update or revise any forward-looking statements as a result of new
information, future events or otherwise. Readers are cautioned not
to place undue reliance on these forward-looking statements that speak only as of the date hereof. Forward Looking Statement |
3 SECURE CONNECTIONS FOR A SMARTER WORLD Compelling Strategic & Financially Driven Decision Acceleration of our strategy in Secure Connections for a Smarter World
Creates a powerhouse in High Performance Mixed Signal
Establishes NXP as the #1 automotive semiconductor supplier
(1) Establishes NXP as the #1 broad-based MCU supplier (1) Anticipate $200M of cost synergies in the first full year after close Clear path to $500M of annual run rate cost synergies Accretive to non-GAAP EPS in the first full year ~2.5x net debt/TTM adj. EBITDA at close; reducing to 2x by summer 2016 Will Drive Significantly Higher Cash Flow Note 1. Gartner; Broad based MCU excludes Automotive MCU products |
4 SECURE CONNECTIONS FOR A SMARTER WORLD Financial Transaction Overview Recap Consideration Total consideration per share 0.3521 NXP shares (fixed exchange ratio) $6.25 per share in cash Total equity value: $11.8 Billion $9.8 Billion in equity $2.0 Billion in cash Freescale shareholders to own just below 30% of combined company Sources of Financing 115 Million shares of NXP common stock (approx.) $2 Billion cash from NXPs balance sheet Approval Process NXP and Freescale Board of Directors have unanimously approved Both NXP and Freescale shareholders have overwhelmingly approved Regulatory approvals in various jurisdictions are expected in due course Timing of Transaction Close Expected in Q4 of 2015, subject to customary closing conditions |
5 SECURE CONNECTIONS FOR A SMARTER WORLD HPMS Market Leader with Sharper Focus, Broader Reach $- $10 $20 $30 $40 $50 NXP SAM 2014E ($B) FSL SAM 2014E ($B) NXP + FSL SAM 2014E ($B) $- $2 $4 $6 $8 $10 NXP Revenue 2014 ($B) FSL Revenue 2014 ($B) NXP + FSL Revenue 2014 ($B) 13% 77% 23% 87% STDP HPMS Combined Company Becomes The Market Leader in HPMS #4 Largest Semi Supplier #1 Auto Semi Supplier #1 Broad-based MCU Minimal Overlap Doubles NXP HPMS SAM NXP & FSL Overlap HPMS Based On 1. Gartner, Total semiconductor market excluding memory. MCU excludes Automotive MCU products
1 1 1 |
6 SECURE CONNECTIONS FOR A SMARTER WORLD Establishes NXP as #1 Auto Semiconductor Vendor Global Auto Semiconductor TAM, 2014 $28B (1) #1 Auto Semi Supplier (1) Doubles Addressable Market Broad Portfolio, No Product Overlap Leadership Positions (2) Car Entertainment Keyless Entry & Access In-Vehicle Networking Chassis & Safety Powertrain Synergistic Future Growth Opportunities Infotainment (Audio and Apps Proc.) Securing the Car ADAS (Radar, Vision, Secure V2X) Highly Valued Supplier to All Major OEMs Based On 1. Strategy Analytics 2. NXP Corporate Market Intelligence estimates NXP + 14% #2 12% #3 11% #4 8% #5 6% #6 6% #7 4% #8 3% #9 3% Others 33% |
7 SECURE CONNECTIONS FOR A SMARTER WORLD Creates the Leader in Broad-based MCU MCU Semiconductor TAM 2014 $11B (1) #1 in Broad-based MCU (1) Leader in fast growing 32-bit ARM MCU (2) Broad-based, general purpose MCU portfolio Ability to pull-through Analog with MCU platform Outstanding customer access in key growth verticals Synergistic Future Growth Opportunities Ideally Positioned to deliver IoT Solutions Security MCU Software Connectivity Building on extensive customer base Based On 1. Gartner, MCU Market excluding Automotive 2. NXP Corporate Market Intelligence estimate NXP + 17% #2 15% #3 11% #4 10% #5 9% #6 7% #7 7% #8 4% #9 3% Others 17% 0% |
8 SECURE CONNECTIONS FOR A SMARTER WORLD Compelling Value Proposition Will drive Significant Additional Shareholder Value World Leader in Automotive semiconductors Strengthen Position in High Growth Focus Markets Profitable Growth Leveraging Operational Excellence & Cost Synergies Strong Cash Generation World-Class Team Globally Customer-Focused Passion to WIN |
9 SECURE CONNECTIONS FOR A SMARTER WORLD Outstanding Strategic Fit Secure Connections for a Smarter World Combined company will Be the leader in automotive semiconductors Leverage NXP security leadership plus Freescale broad MCU Influence evolution of Secure Car & ADAS solutions Capture emerging growth in the Smarter World Broad, diverse customer base Strengthens position as major semiconductor supplier Complementary market reach across US, EU, China Ability to effectively cross-sell total solutions Strong and broad product portfolio for emerging IoT market Connected Car Security Portable & Wearable Internet of Things |
10 SECURE CONNECTIONS FOR A SMARTER WORLD Combined Company Facts Stats: Projected > $10B in annual revenue ~ 45,000 employees across > 35 countries 12,000+ engineers In excess of 9,800 patent families Will move NXP from No. 11 to the No. 4 non-memory supplier Semiconductor Company in the world Reinforces the NXP Value Proposition Grow >1.5x faster than the market Positioned to deliver superior profitability Connected Car Security Portable & Wearable Internet of Things |
11 SECURE CONNECTIONS FOR A SMARTER WORLD Shareholders Meetings Held July 2, 2015 Both NXP and Freescale Shareholders approved the merger during special meetings Over 99% of votes casts at both meetings were in favor of the merger Clears the path for the remaining stages of the process During NXP Shareholders Meeting the following appointments were also made: Gregory L. Summe and Peter Smitham, currently board members of Freescale, as non- executive directors of NXP, effective as of Day One |
12 SECURE CONNECTIONS FOR A SMARTER WORLD A New Future for RF Power As previously announced, NXP searched for company to acquire its RF Power business
RF Power sale expected to expedite the antitrust approval process of Freescale merger
On May 28, 2015, NXP reached agreement RF Power will be acquired by JianGuang Asset Management (JAC Capital) Transaction expected to close in Q4 of 2015, subject to regulatory approvals and other customary
closing conditions RF Power is a strong and healthy business that will continue to thrive under JAC
At close, JAC Capital will acquire 100% of RF Power, including but not limited to:
2,000 people including the entire RF Power management team Dedicated R&D, Customer Support and Assembly & Test in the Philippines (APP)
Contracts, Patents and IP that are exclusive to RF Power will also transfer Measures in place to prevent customer supply disruption during and after divestment |
13 SECURE CONNECTIONS FOR A SMARTER WORLD May Jun Jul Aug Sep Oct 2015 MT+1 Decision May 27 GSM MT+1 Decision Jun 10 Shareholders Meetings RF Sale Announcement May 28 FTF Jun 22 March 02 Announcement of proposed merger between NXP and Freescale; Combined company steering committee established to oversee
process
May 27 MT+1 Decision May 28 NXP RF Power Sale to JianGuang Asset Management (JAC Capital) Announcement Jun 10 Global Sales & Marketing MT+1 Decision Jun 22-25 Freescale Technology Forum (FTF) July 2 Special shareholder meetings for Freescale and NXP; affirmative decisions from Freescale and NXP shareholders on proposed merger
4Q 2015 Target closing of proposed merger and begin operating as one company 4Q 2015 Completion of RF Power Sale to JAC Capital Summary of Communications to Date and Known Upcoming Nov Dec Target Close 4 Quarter 2015 RF Sale Completion 4 Quarter 2015 Apr Mar Proposed NXP/FSL Merger Announcement March 2 MERGER FULLY ON TRACK th th |
14 SECURE CONNECTIONS FOR A SMARTER WORLD No Offer or Solicitation This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between NXP and FSL. Additional Information about the Merger and Where to Find it. Important Information For Investors And Shareholders In connection with this proposed business combination, NXP has filed with the Securities and Exchange Commission (the SEC) a registration statement on Form F-4 that includes a definitive joint proxy statement of NXP and FSL that also constitutes a definitive prospectus of NXP. The registration statement
was declared effective by the
SEC on June 1, 2015. Each of NXP and FSL may file with the SEC other documents in connection with the proposed transaction. This communication is not a substitute for any proxy statement, registration statement, proxy statement/prospectus or other document NXP and/or FSL may file with the SEC in
connection with the proposed transaction.
INVESTORS AND SECURITY HOLDERS OF NXP AND FSL ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT ARE FILED OR MAY BE FILED
WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL
CONTAIN IMPORTANT INFORMATION.
The definitive proxy statement/prospectus will be delivered to shareholders of NXP and FSL on or about June 2, 2015. Investors and security holders are able to obtain free copies of the definitive joint proxy statement/prospectus and other documents filed with
the SEC by NXP and/or FSL through the internet website maintained by the
SEC at http://www.sec.gov. Copies of the definitive joint proxy
statement/prospectus and the other documents filed
with the SEC by NXP are also be available free of charge on NXPs Investor Relations internet website at http://www.nxp.com/investor or by contacting NXPs Investor Relations Contact by phone at 1-408-518-5411. Copies of the definitive joint proxy statement/prospectus and the other documents filed with the SEC by FSL
are available free of charge on FSLs Investor Relations internet website at http://investors.freescale.com or by writing to Freescale Semiconductor, Ltd., c/o Freescale Semiconductor, Inc., 6500 William Cannon Drive West, Austin, Texas 78735, Attention: Investor Relations or by phone at
1-512-895-2454. |