Chip maker Qualcomm buying NXP Semiconductors in $47B deal

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FILE - In this Nov. 2, 2011, file photo, a sign sits atop the Qualcomm headquarters building in San Diego. Chip maker Qualcomm is buying NXP Semiconductors N.V. in a deal valued at approximately $38.1 billion announced Thursday, Oct. 27, 2016. (AP Photo/Gregory Bull, File)

FILE - In this Nov. 2, 2011, file photo, a sign sits atop the Qualcomm headquarters building in San Diego. Chip maker Qualcomm is buying NXP Semiconductors N.V. in a deal valued at approximately $38.1 billion announced Thursday, Oct. 27, 2016. (AP ... Photo/Gregory Bull, File) (The Associated Press)

Chip maker Qualcomm is buying NXP Semiconductors N.V. in a deal valued at approximately $47 billion.

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NXP shareholders will receive $110 per share for each share they own. That's an 11.5 percent premium to the company's Wednesday closing price of $98.66.

The combined company is expected to have annual revenues of more than $30 billion.

Both companies' boards approved the transaction, which is targeted to close by the end of 2017.

Shares of Qualcomm Inc., which is based in San Diego, are up slightly before the opening bell Thursday. Shares of NXP, based in Eindhoven, Netherlands, gained more than 2 percent.