Qualcomm will pay for the acquisition using cash and new debt.

The combined company is expected to have sales of $30 billion a year.

The price just tops the $37 billion Avago paid for Broadcom.

“With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry. The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,” says Qualcomm CEO Steve Mollenkopf, “by joining Qualcomm’s leading SoC capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realize all the benefits of the intelligently connected world.”

“We have taken significant action to build a foundation for profitable growth and the acquisition of NXP is strongly aligned with our strategy,” adds Mollenkopf, “our companies both have substantial expertise in delivering industry-leading solutions to our global customers, built upon a shared commitment to technology innovation, focused R&D investments and strong financial and operational discipline.”