AUSTIN, Texas-Chipmaker Freescale Semiconductor Inc. said it signed a definitive merger agreement to be bought by a private-equity consortium led by The Blackstone Group.
The transaction is valued at $17.6 billion.
Other members of the consortium include The Carlyle Group, Permira Funds and Texas Pacific Group.
Terms of the agreement call for the consortium to acquire all outstanding class A and class B shares of Freescale for $40 cash per share. Freescale’s board of directors has approved the agreement, said the company.
Freescale’s stock was up on the news to almost $40 per share.
Freescale said the agreement includes a provision that allows it to solicit alternative proposals for a period of 50 days, and it may respond to unsolicited proposals. A break-up fee would apply if it accepted a superior offer.
Freescale said Sept. 11 that it was in discussions with third parties about a possible buyout.
Spun off from Motorola Inc. in 2004, Freescale makes chips for a variety of cell phone makers including Motorola.
