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Another huge deal was announced Thursday, and it could once again mean a big payday for Wall Street.
The smartphone-chip maker Qualcomm has agreed to buy NXP Semiconductors for $47 billion in an all-cash deal.
The deal is the largest in the history of the semiconductor industry, and it is part of a frenzy of multibillion-dollar deals in the sector over the past 20 months.
The two companies aim to form a behemoth that leads in the growing markets for car infotainment systems and internet-of-things devices while remaining a major supplier of mobile-phone chips.
The boutique bank Qatalyst Partners was the lead adviser to NXP, along with Barclays and Credit Suisse. On the buy side, Goldman Sachs and Evercore advised Qualcomm. The boutique firm Centerview Partners advised Qualcomm’s board.
Qatalyst, Evercore, and Centerview Partners are all tiny compared with the financial behemoths they are working alongside. Qatalyst lists about 45 employees on its website, while Centerview lists 30 partners on its website, and Evercore lists about 80 senior managing directors in corporate advisory globally.
The consultant Freeman & Co. estimates advisory fees could total about $70 million to 80 million on each side.
There will also be a bridge loan, and Goldman Sachs and JPMorgan are providing the debt financing, though we don’t yet know the size of the loan.
It’s been a big week for Wall Street dealmakers. At least four deals were announced Monday, which could amount to a combined $200 million in fees for banks.
That followed the announcement of AT&T’s $85 billion deal for Time Warner, which could mean up to $390 million in advisory fees.
And it might not be over yet. In a note to employees sent on Tuesday, Citigroup’s head of investment banking said there were “a number of significant landmark transactions still in the works, some of which could sign in the next few weeks.”