Philips Semiconductors becomes NXP

The name change announcement follows an agreement between Royal Philips and Kohlberg Kravis Roberts & Co. (KKR), Bain Capital, Silver Lake Partners, Apax and AlpInvest Partners NV that will see the consortium take an 80.1% stake in the semiconductor operation with Philips retaining a 19.9% interest. NXP is Europe's second largest semiconductor company and a global top 10 player. Speaking at the Internationale Funkausstellung (IFA) consumer electronics show in Berlin, Mr. van Houten explained that the company's 'vibrant media' brand promise reflects its leadership in media technologies that enable better sensory experiences for consumers such as superior image and sound quality in digital televisions, mobile phones and other entertainment products. "Today we take control of our own destiny and start to shape the future of the semiconductor industry. We enable our customers to build better products, based on our next generation vibrant media technologies," said Mr. van Houten. "NXP stands for Next Experience. Put simply, we're enabling the next generation of consumer entertainment products. In order to emphasize the rich heritage which NXP gained from 53 years as part of Royal Philips, the NXP name will be supported by the tagline founded by Philips." Derek Lidow, CEO of iSuppli said, "This largest technology leverage buyout ever will create a real semiconductor powerhouse. Armed with its independence, and starting out as Europe's second largest semiconductor company, the management team has clearly just started re-writing the history books."