NXP completes acquisition of TTTech Auto for software vehicle tech

EINDHOVEN, Netherlands - NXP Semiconductors N.V. (NASDAQ:NXPI), a prominent player in the semiconductor industry with a market capitalization of $55 billion, has completed its acquisition of TTTech Auto, a provider of safety-critical systems and middleware for software-defined vehicles (SDVs), the company announced Today.

The acquisition, initially announced in January 2025, combines NXP’s CoreRide platform with TTTech Auto’s MotionWise safety middleware to help automakers address software and hardware integration challenges in next-generation vehicles. According to InvestingPro data, NXP maintains a strong financial health rating, with liquid assets exceeding short-term obligations.

TTTech Auto will maintain a neutral position within the industry ecosystem, continuing to support various system-on-chip manufacturers, automakers, and third-party software partners. This approach aims to preserve the company’s ability to work across multiple platforms while advancing software-defined vehicle capabilities.

"The combined offering helps automakers reduce complexity and development efforts while increasing scalability and cost-efficiency required for next-generation vehicles," NXP stated in a press release.

The acquisition is part of NXP’s strategy in the automotive semiconductor market, where the company has established a significant presence. NXP reported revenue of $12.61 billion in 2024 and operates in more than 30 countries. InvestingPro analysis shows 12 analysts have recently revised their earnings expectations upward, with the company currently trading near its Fair Value. Discover more insights and detailed financial analysis in NXP’s comprehensive Pro Research Report, available with an InvestingPro subscription.

Financial terms of the acquisition were not disclosed in the announcement.

NXP Semiconductors provides solutions for automotive, industrial and IoT, mobile, and communications infrastructure markets.

In other recent news, NXP Semiconductors announced an interim dividend of $1.014 per share for the second quarter of 2025, highlighting the company’s confidence in its capital structure and long-term growth potential. This dividend will be paid on July 9, 2025, to shareholders of record as of June 25, 2025. Meanwhile, NXP reported first-quarter revenues of $2.835 billion, a 9% decline year-over-year, although some segments like Communication Infrastructure exceeded expectations. UBS maintained a Buy rating with a target price of $265, citing slightly above-market expectations for NXP’s non-GAAP EBIT in the first quarter. However, Bernstein revised its price target down to $200 due to concerns over tariff impacts on the automotive sector. Truist Securities also lowered its target to $230, factoring in the unexpected retirement of CEO Kurt Sievers and challenging market conditions. Stifel kept its Hold rating with a $170 target, noting a slight increase in non-GAAP EPS despite revenue declines. Investors are advised to consider these developments as NXP navigates a complex market environment.

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